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 ...
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 ...
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 ...
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 ...
August 05, 2014
Nearly 120 jobs have been lost after payday
lender The Cash Store went bust. The company which is based in Stockport has
now entered into an administration with FTI Consulting appointed as
administrators. Administrators have confirmed that 13 jobs have been lost at
the Stockport headquarters. The Cash Store Ltd is a subsidiary of The
Cash Store Financial Services Inc based in Alberta, Canada. The company has 506 branches in Canada and
27 across the UK, although many of them are in the North West. Administrators from FTI Consulting said:
"Cash Store was loss making and had been reliant on funding from its
Canadian parent company which was ...
August 04, 2014
Manchester-based business recovery business, The Business
Debt Advisor, has been appointed to advise the directors and shareholders of
Sumner’s Media City Limited (SMCL), a TV post production company based at
MediaCityUK in Salford. SMCL is a post production facility trading out of The Pie
Factory at MediaCityUK. Founded by husband and wife team, Andy and Janet
Sumner, the company was incorporated in 2007. It began trading in 2013
following the winding down of Andrew Sumner & Associates Ltd (Sumners) which
was founded in 1992 and, over 20 years of trading, became one of the largest
post production companies outside of London with a turnover of £4.5M. Sumners faced ...
July 31, 2014
According to the ICAEW, HMRC should scrap
plans for new debt recovery powers because the process is “unconstitutional”
and “wrong in principle”. Under the new plans, HMRC will be able to
deduct tax owed from a debtor’s bank account proving at least £5,000 is left
across all their accounts including ISAs. HMRC has insisted that these measures would
be used against those who have repeatedly refused to engage with them and would
be used as a last resort, but the ICAEW have deemed that the proposals fail to
meet the criteria of being “fair, proportionate and accompanied by robust
safeguards”. The ICAEW said: "It is necessary to go
July 23, 2014
HMRC expects to raise about £7bn though
issuing accelerated payment notices to individuals involved in tax avoidance
schemes. Notices relating to known tax avoidance
schemes will be issued to 43,000 taxpayers as HMRC clamps down on the use of
such schemes. The Revenue are expecting to raise around
£5.1BN from the 33,000 individual tax payers. The remaining 10,000 taxpayers
are businesses and are expected by the Revenue to contribution the balance of
£1.9BN. Under the recently introduced ‘Accelerated
Payment’ rules, HMRC will be able to make taxpayers pay disputed tax in advance
rather than waiting for the outcome of a tax tribunal ruling. If the taxpayer
goes on to win ...
July 03, 2014
According to research from Manchester online commercial debt
recovery law firm Debt Guard Solicitors, NORTH West small and medium-sized
companies are carrying up to £1.5m of trade debt, research has suggested. Trade
debt means monies owed to the companies for goods and services supplied to the
The smallest companies, with 1-9 staff and a turnover of less than £2m were proportionately
the hardest hit the debtors owing amounting to 19% of turnover. The findings were based on official account details
submitted to Companies House by 819 North West SMEs. The research identifies
firms in Liverpool and Blackburn as carrying higher than average amounts of
trade debt, ...