January 21, 2015
MONKEY GAMING UPDATE ON ROT Further to the November
2014 Insolvency Practitioners Associations guidance paper on Retention of Title
Claims and Molly Monks subsequent blog “What
is Retention of Title?”, a recent case has examined the scope of what
an office holder (Liquidator/Administrator etc) duties are (or not as the case
may be) in relation to Retention of Title Claims. Here, Molly Monks, the
Corporate Insolvency Manager at The Business Debt Advisor, provides a synopsis
of the case and what this means for suppliers who use this clause. The case 'Blue Monkey
Gaming Limited V Hudson & Others' is a recent (2014) case where a £4M ...
January 16, 2015
announced they are to close 43 unprofitable stores amid faltering profits and
caution from investors. The stores being closed primarily fall into the
‘Express’ labelled smaller stores of the brand. Plans have also been announced
to delay or cancel the openings of 49 ‘large’ Tesco Extra stores. The chain
have also began a major restructure of spending by ending their pension scheme
for staff, making cuts of £250m pounds and reducing overheads by 30%. Tesco have
moved quickly to instil confidence in their investors amid a bad 2014, which saw
an investigation into their accounts, as well as falling sales in store and
outrage at the chaos ...
January 13, 2015
of my customers has entered into Liquidation and owes me money – will I get my
money back?” Within this blog, Molly
Monks, the Corporate Insolvency Manager at The Business Debt Advisor, answers
some of the questions raised when business owners find themselves faced with a customer
entering into Liquidation. Term Definition Liquidator A person appointed to wind up the affairs of
a company Claim Money
owed Creditor To whom money is owing (ie you) Debtor Someone who owes money (i.e. a customer) Dividend An
amount of money paid to the creditor Q
Will I get my money back? ...
January 06, 2015
fashion retailer ‘Bank’ has fallen into administration, putting 1,500 jobs at
risk. All stores
remain open as normal and no redundancies have been made, but hard times have
hit the retailer that was sold by JD Sports to investment firm Hilco Capital
November. The failure
comes just days after the Christmas Eve collapse of City Link, which was
also owned by a financial firm specialising in turning around troubled firms. Bill Dawson
one of the appointed administrators from Deloitte gave the following statement: "Bank has struggled in a highly
competitive segment of the retail industry and has been loss-making for a
number of years. A review of the ...
January 02, 2015
2,356 of the staff employed by City Link have
been made redundant. The news comes amid a failed takeover bid from an unnamed
consortium. Ernst & Young had warned immediately following their
appointment that thousands of staff would be made redundant if a suitable buyer
for the business could not be found. Ernst & Young Administrators Hunter
Kelly, of Ernst and Young, said: "City Link Limited has incurred substantial
losses over several years. These losses reflect a combination of intense
competition in the sector, changing customer and parcel recipient preferences,
and difficulties for the company in reducing its cost base. “The
strain of these losses became too great and ...
November 19, 2014
In November 2014 the Insolvency Practitioners Associations
released a new guidance paper on how Retention of Title claims are handled within
an insolvency situation. Here, Molly Monks of The Business Debt Advisor provides a
basic guide to Retention of Title ("ROT") and its uses. What is Retention of
Title? A clause stating that title to goods supplied will remain
the property of the supplier until monies owing have been paid. Who can it benefit? It can give protection to anyone who supplies goods,
typically used in the trade sector. Is it as simple as
"mine until you pay"? No, the ROT clause must be accepted and ...
November 05, 2014
THREE MORE FIRMS FALL AMID TIGHTER REGULATION This morning news has emerged that three Debt Management companies located in the North West have gone into administration, leaving behind up to 2,500 clients who were actively trying to reduce their debts stuck in limbo. This comes around three weeks after the FCA warned customers to stop making payments after it emerged the companies couldn’t pay their creditors. The companies are; One Tick, owned by Gary Gregson, Gregson and Brooke owned by Shalles Onido and The Money Management Services, owned by David Brennan. All of the companies are linked through Gary Gregson ...
November 04, 2014
In a judgment expected at 10:30 am today, employers across the country will find out whether they cumulatively owe potentially billions of pounds to employees over unpaid holiday claims. If the controversial ruling is upheld, it could see many businesses fall into turmoil as they try to cope with pay dated back as far as 1998. The Employment Appeal Tribunal will today meet to rule on whether businesses should be forced to backdate holiday pay as far as 1998. In order to do so they will incorporate the Bear Scotland versus Fulton Case which focuses on the interpretation of the ...
October 28, 2014
Bankruptcy tourism is on the increase in the UK. Our relatively soft-touch regime whereby you can be discharged from bankruptcy within a year is becoming more and more appealing to Europeans, more notably those from Ireland and Germany. These countries have much harsher bankruptcy systems than here in the UK. It can take up to 7 years in Germany and 3 years in Ireland to be discharged, compared to the one year automatic discharge granted in England and Wales – unless reason is shown to the contrary. Under the EC Regulation on Insolvency Proceedings, a debtor can petition for bankruptcy ...
September 29, 2014
I recall fairly vividly the excitement of pulling together everything necessary to set up a business as an insolvency practice in 1999. Having spent 17 fantastic years at Deloitte latterly as an insolvency manager, I was ready for the next chapter. This was one of the most exciting times of my life. I worked into the early hours of the morning costing every item of equipment, studying statistics on the marketplace and preparing cash flows, profit forecasts and balance sheets. I had a lot of support from Hurst Accountants who were contemplating setting up an insolvency arm. They had insisted ...