Despite insolvencies being an a record low in over a decade, a large number of businesses are voluntarily closing down due to the economic uncertainty around coronavirus and fears over a possible increase in Capital Gains Tax.?
Mothercare and Carluccio’s have become the latest in an increasingly long line of high street names to propose Company Voluntary Arrangements (CVAs) involving significant site closures and rent reductions.
After running into financial difficulties in 2017, Carillion has gone into liquidation. While often bandied around in the news, it?s not a term you?ll find explained, which has left some to ponder the difference between words such as liquidation and administration.?
With the government, banks and Carillion unable to come to an agreement over the weekend, the firm?s demise should prompt a rethink on contract distribution.
When a business is failing, bills are not being paid and problems are getting worse – it’s time to seek help and professional advice at the earliest possible opportunity. This is particularly important when business is still continuing; a director can be accused of ‘wrongful trading’ or ‘fraudulent trading’. In both cases the directors are at risk of being held personally liable for the debts.
A failing or failed business will always bring stress, family problems and if you’re really unlucky, divorce. But one problem which can be prevented is to hold off calling in the insolvency practitioner until your affairs are in order.
In the first quarter of 2011, there were 4,121 company liquidations in England and Wales. Here are seven reasons why so many businesses crumble.