July 22, 2015
Bev Budsworth, managing director of The Debt Advisor, is
today warning barristers not to ‘bury their heads in the sand’ and to make sure
they are fully prepared for the impending July tax bill deadline at the end of
the month. Bev commented: “The next fortnight is really the crunch time
for barristers as their second tax bill is due.” Effectively this payment is ‘on
account’ and is normally equal to half of their previous year’s tax bill. “It
will be a worrying time as many will struggle to pay this year’s tax bill and
some won’t have even paid last year’s tax bill off yet – ...
June 01, 2015
Pre-Packing refers to the
practice of arranging the sale of a business, either in whole or in part, prior
to the company entering into formal insolvency.
The proposed sale is then executed on the appointment of an
administrator and often the creditors of that company have no knowledge of the
transaction until the deal is done.
Although common practice, the process is not legislated for within current
statute but developed entirely through market practice. On 16 June 2014, Teresa
Graham published her long anticipated report to The Rt Hon Vince Cable MP who
was then the Secretary of State for Business Innovation and Skills. The report,
commonly referred to as ...
April 29, 2015
Figures published today by the Insolvency
Service show that personal insolvencies in England and Wales decreased again in
the first quarter of this year to 20,826 a reduction of 18.6% on the same
period 12 months ago. This figure comprises 4,209 bankruptcies, 6,213 debt
relief orders (DROs), and 10,405 Individual Voluntary Arrangements (IVAs).
Company liquidations in the first quarter of this year also decreased to 4,052,
a 1.3% reduction on the previous quarter and 11.3% lower than the same quarter
in 2014. Bev Budsworth, managing director of The
Debt Advisor, commented: “Today’s continued decline in insolvencies, shows that
corporate insolvency is now at its lowest level since 2008 and ...
April 08, 2015
at The Business Debt Advisor were consulted in late March 2015 to review the
financial position of a company based in Derbyshire employing 30+ staff which
undertakes large engineering projects for a range of industries. Funders to
the business had recommended the business seek insolvency advice as the company
was struggling to adhere to a time to pay plan set up with the Revenue. The
company’s struggles could be traced back to 2013 when it sustained a large bad
debt in excess of £100k. Additionally £40k of work in progress had to be
written off when a long established customer went into administration. The bad
debt crippled ...
March 26, 2015
The clocks are due to "spring
forward" on the 29 March 2015 and business owners will find that not only
have they lost an hour they may spend a further hour amending their till and
alarm systems! But what positive effects can business owners look forward to
with this extra hour of sunlight? Within this blog, Molly Monks, the Corporate
Insolvency Manager at The Business Debt Advisor, looks at how British Summer
Time ("BST") has a
positive effect on businesses. What triggered Daylight Saving Time (BST")? The origin of BST is highly debated whether it
was invented by "the First American"; Benjamin Franklin in 1784, or the astronomer...
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 ...