Category: Company News

Business For Sale

Wholesaler of outdoor recreational and leisure products (including toys) – North West of England

Opportunity

An opportunity exists to purchase the business and assets of a company trading in the Outdoor Recreational and Toy Market. Based in the North West of England the business was established in 1973 and has a loyal workforce of 15 employees.

The business has achieved the following results over the past three years:

Business For Sale - Business Results Over Last 3 Years

 

 

 

Up until 2016 the Company traded solely in the Toy Market. Since then the business has undergone a radical turnaround with the move into the Outdoor and Water Leisure Market, selling products including inflatable spas, kayaks and paddleboards together with a range of camping products. There remains a much smaller toy business focussing on educational products, sunshades and play tents.

As a result, performance in the present financial year has improved considerably, with the Company forecast to achieve a Net Profit of c£300k from a turnover of c£6m in the next financial year. This can be summarised below: –

Business For Sale - Business Information For Next Financial Year

 

 

 

It is anticipated that due to the financial position of the Company, the purchase will be executed at the earliest opportunity and will be a sale of the business and assets as a going concern.    

Assets Available for Sale

The Company has an impressive customer base and a well-established supply chain.

There is an attractive product portfolio with market-leading product designs, together with dedicated people and robust procedures.

The business operates from freehold premises, with other assets consisting of office and warehouse equipment, motor vehicles and plant & machinery and stock, together with Web domain and B2B and B2C website, IP of the business and Goodwill.

Deadline for Offers

All offers should be sent to James Fish at Royce Peeling Green Limited by close of play on Thursday 29 March 2018. Requests for any further information should be made to James Fish on 0161 608 0000 or jfish@rpg.co.uk.  All offers should be supported by proof of funding and no later offers will be accepted.   

A purchaser must be able to complete immediately.   

Life after Liquidation? Can Directors start another Company?

life after Liquidation

Is there life after Liquidation? and “what will I do to earn a living once I have placed my company into Liquidation?”

As you can imagine the lead up to Liquidation can cause many sleepless nights worrying on how you pay pressing creditors, paying the employees, paying HM Revenue & Customs or fending off legal action or Bailiffs.  Many Directors have reported back to us that once they had engaged RPG Business Recovery it was the first proper nights sleep they have had for weeks or even months.  At RPG Business Recovery we take time to listen to the problems the Directors have been facing and produce a plan on how the business can move forward or if required start a process of placing the Company into Liquidation.  Even in the situation of needing to place the Company into Liquidation, Directors have reported back to us that “this immediately took a weight off their shoulders”.  The process of placing the Company into Liquidation immediately dealt with pressing creditors, creditors commencing or continuing with legal action, employees outstanding wages and even the dreaded Bailiffs.

At RPG Business Recovery we also appreciate that by placing the Company into Liquidation this may sound daunting and Directors may be scratching their heads on how they are going to earn a living going forward and how are they going to pay their mortgages if their Company goes into Liquidation?  As part of the process and the initial consultation, which is FREE of charge, we look at what has gone wrong and share our thoughts with the Directors.  In some cases the Company has never actually ever made any profits and perhaps in some cases the business concept has never worked.

In other cases, the Company has just had some bad luck and even after Liquidation there is nothing stopping the Directors from having another go and forming a new Company.  We hear you say, are you sure that this is this legal or even morally correct?  The simple answer is YES.  However, there are some restrictions and we will guide you through these including using a similar name.

To deal with the moral issue, lets give you an example.  Limited Company has been trading year on year making steady profits and during the last couple of months one of their largest customers goes bust (enters into a formal insolvency process).  This customer represents say 25% of the turnover and say 50% of your debtor balance (money due to you) as they have not been paying you on time and the balance has built up.  The Limited Company has a bad debt that it is unlikely to recovery in full (recoveries in Liquidation are often below 10%) and any recovery is unlikely to be in the next 12 months.  The customer that has gone bust may cause cash flow issues for the Limited Company and may result in the Limited Company needing to take an insolvency solution at no fault of their own.  At RPG Business Recovery we don’t believe that there is any moral issue here given a customers insolvency has caused the Limited Company’s insolvency.  So what is wrong with the Director’s of the Limited Company having another go with a fresh start?

So is there “life after Liquidation”? 

We believe there certainly is and often by having a fresh start and learning from historic mistakes the Director has the best opportunity to make the new company even more successful the second time round.

RPG Business Recovery is part of Royce Peeling Green Limited (a firm of Chartered Accountants) and was established over 100 years ago (established in 1911). RPG have offices in Manchester, London and North Wales.  All Insolvency Practitioners at RPG Business Recovery are authorised and licensed by The Institute of Chartered Accountants in England and Wales (ICAEW).

At RPG Business Recovery we highly recommend that Directors should always take advice as early as possible as this gives us the greater chance of being able to save your business and avoid a business closure. Please feel free to contact us for a FREE no obligation advice meeting or if you prefer you are welcome to contact our Licensed Insolvency Practitioners directly.  Our Insolvency Practitioners are Alan (mobile 07580 885750) and James (mobile 07717001087).

 

 

 

In closing a limited company, how do you deal with the employees?

employees

A frequent question we are asked at RPG Business Recovery is – I am considering closing a limited company, how do you deal with the employees?  It would not surprise you that the main area of concern many Directors have when considering to close their Limited Company is what happens to their loyal workforce and how do the employees get paid.

If a Director decides to close their Limited Company, it really depends on whether the Company is Solvent or Insolvent will determine how the employees are dealt with and how they are paid.

If the Company is Solvent, the Directors should take some specialist legal advice first.  But they will need to be prepared to pay each employee any outstanding wages, accrued holiday entitlement and redundancy.  The Company also needs to provide the employee with notice that their contract is being terminated and this is based on the level of their service and what is said in their contract of employment.  As a general rule of thumb, you have to take the greater of their Statutory entitlement or their contractual entitlement.  The Statutory entitlement is calculated as one week for each full year of service up to a maximum of 12 weeks notice for 12 years service.  If you have more than 20 employees then we strongly recommend that you take urgent legal advice from an employment Solicitor as there are some additional rules that can be expensive if you get the procedure wrong.

Many Directors are then faced with the problem that they are solvent as they can pay all their creditors (debts owed by the business) but can’t afford to pay the employees all their entitlements on top of paying all their creditors.  This can cause the company to flip from being solvent to insolvent.  At this point the Director should take advice from a Licensed Insolvency Practitioner to avoid any criticism personally or worse that they are held personally liable for paying one creditor over another known as a Preference.

Employees of an Insolvent Employer

If the Company is Insolvent, then the amounts due to employees in respect:

  • Outstanding wages including outstanding pension contributions
  • Accrued holiday entitlement
  • Payment in lieu of notice
  • Redundancy pay

will be paid by a Government Department known as The Redundancy Payments Office.  The amount paid to employees by The Redundancy Payments Office is restricted to the Statutory limits currently £489 per week or part thereof.  The Redundancy Payments Office will only make these payments to employees of an Employer if the Employer has entered into a formal Insolvency Process, these Insolvency Processes include:

At RPG Business Recovery, we respect that your loyal employees deserve to be treated fairly and if you entrust us to deal with the insolvency of your business we go the extra mile in ensuring that we give them sufficient help in making the claims against The Redundancy Payments Office.  Don’t forget, most Directors are also employees and can make similar claims as an employee.

In answering the original question – in closing a limited company, how do you deal with the employees? it really depends on the financial position of the Company.  At RPG Business Recovery we help many solvent and insolvent businesses and therefore please feel free to contact us for a FREE no obligation meeting.

RPG Business Recovery is part of Royce Peeling Green Limited (a firm of Chartered Accountants) and was established over 100 years ago (established in 1911). RPG have offices in Manchester, London and North Wales.  All Insolvency Practitioners at RPG Business Recovery are authorised and licensed by The Institute of Chartered Accountants in England and Wales (ICAEW).

At RPG Business Recovery we highly recommend that Directors should always take advice as early as possible as this gives us the greater chance of being able to save your business and avoid a business closure. Please feel free to contact us for a FREE no obligation advice meeting or if you prefer you are welcome to contact our Licensed Insolvency Practitioners directly.  Our Insolvency Practitioners are Alan (mobile 07580 885750) and James (mobile 07717001087).

Insolvency solutions for professional firms

Insolvency Practitioners for professional firms

RPG Business Recovery over the years have become the preferred Insolvency Practitioners for professional firms with financial issues.

RPG Business Recovery have advised the following professional sectors:

Accountants

Solicitors

Conveyance companies

Chartered Surveyors

Quantity Surveyors

Debt Management companies

Insolvency Practitioners (yes even Insolvency Practitioners can have cash flow issues)

Having a firm understanding of the key issues of professional firms and having the right expertise we have helped restructure a number of firms and also dealt with a number of formal insolvency appointments when restructuring is not an option.

Professional firms have different needs and understanding how such businesses can be restructured while staying within the legal framework is key.  We fully understand and appreciate the additional regulatory issues and the issues that can be caused by the individual members of a regulatory body.  Unlike many companies that go through an insolvency process, where the Directors are often free to start again in the professional arena their regulators may take regulatory action which may exclude the member from membership.  In additional, with most professional companies there is a big issue with Professional Indemnity Insurance and run off cover.  Clearly this needs addressing to avoid any personal liability on the Member/Directors.

RPG Business Recovery is part of Royce Peeling Green Limited (a firm of Chartered Accountants) and was established over 100 years ago (established in 1911). RPG have offices in Manchester, London and North Wales.  All Insolvency Practitioners at RPG Business Recovery are authorised and licensed by The Institute of Chartered Accountants in England and Wales (ICAEW).

At RPG Business Recovery we highly recommend that Directors should always take advice as early as possible as this gives us the greater chance of being able to save your business and avoid a business closure. Please feel free to contact us for a FREE no obligation advice meeting or if you prefer you are welcome to contact our Licensed Insolvency Practitioners directly.  Our Insolvency Practitioners are Alan (mobile 07580 885750) and James (mobile 07717001087).

 

How do I deal with a warning letter from HM Revenue & Customs?

Many companies each day receive warning letters from HM Revenue & Customs for unpaid taxes.  The letters range from a reminder that tax is outstanding to more demanding and formal letters demanding payment of outstanding taxes within seven days.  This letter is known as the seven day warning letter.  It normally states that if the taxes are not paid within seven days that HM Revenue & Customs will start legal proceedings which may result in a winding up petition being issued against the Company and if the Directors take no action the Company may end up in Compulsory Liquidation.

Once HM Revenue & Customs issues a winding up petition it will state on the face of the Court document the date of the hearing in Court, which is normally between 6-8 weeks later, where a Judge will decide whether the Company should be placed into Compulsory Liquidation.

Once the petition has been issued and before the Court hearing, details of the petition are advertised in The London Gazette and on this day it normally causes the Company to cease trading as the Company’s bankers freeze the Company’s bank accounts and customers learn of the pending action and may stop placing orders in fear that they may not be fulfilled.

If a Director is receiving warning letters from HM Revenue & Customs then don’t delay and take urgent advice NOW.  In many cases it does not need to be the end of the road when a Director receives such letter.  Directors are often surprised at the options that are still available to them even at this stage.  Contact us to arrange an urgent FREE OF CHARGE advice meeting.

Some myths that Directors have at this stage:

“HM Revenue & Customs have been very supportive and I have used up all the goodwill with HM Revenue & Customs and I have left them very little option other than to issue a winding up petition”

“My bankers have declined any further borrowings and this leaves no alternative to raise any finance”

“Even if I can pay HM Revenue & Customs, I have other creditors and employees that I would be unable to pay”

“I am unable to recover from the Company’s credit rating substantially reducing as a result of the winding up petition being in the public domain”

“One of our key suppliers has put us on stop and we are unable to trade without the support of this key supplier”

“One of our key suppliers has enforced Retention of Title and collected all their goods and the letter from HM Revenue & Customs is the final nail in the coffin”

In all these scenarios we have found solutions which has allowed the business doors to remain open and for the business to move forward.  Liquidation does NOT have to be inevitable.  RPG Business Recovery are experts in providing good sound advice when it is needed the most.

Remember – only Licensed Insolvency Practitioners can assist you with formal insolvency appointments (this is a legal requirement) and are best placed to provide insolvency/debt advice.  Licensed Insolvency Practitioners are highly regulated and have professional indemnity insurance.  Unfortunately, there are a number of unregulated “debt advisors” advertising on the web that demand payment for their costs and then have to refer you to a Licensed Insolvency Practitioner for any formal insolvency who may also require payment and you could effectively end up paying twice unnecessarily.  In our experience, many debt advisors provide poor or wrong advice and in some cases encourage Directors to break the law.

RPG Business Recovery is part of Royce Peeling Green Limited (a firm of Chartered Accountants) and was established over 100 years ago (established in 1911).  RPG have offices in Manchester, London and North Wales.  All Insolvency Practitioners at RPG Business Recovery are authorised and licensed by The Institute of Chartered Accountants in England and Wales.

At RPG Business Recovery we highly recommend that Directors should always take advice as early as possible as this gives us the greater chance of being able to save your business and avoid a business closure.  Please feel free to contact us for a FREE no obligation advice meeting or if you prefer you are welcome to contact our Licensed Insolvency Practitioners directly.  Our Insolvency Practitioners are Alan and James. You are welcome to contact either Alan (Mobile 07580 885750 or email acoleman@rpg.co.uk) or James (Mobile 07717 001087 or email jfish@rpg.co.uk) directly.

How do I close down a Limited Company?

What is an Insolvency Practitioner?

At RPG Business Recovery we are often asked how do I close down a Limited Company?  As you can imagine the answer ranges from a very simple solution to more complex solutions which is all depending on the Company.

The way you closing down a Limited Company depends on a number of factors such as:

  1. Is the Company Solvent or Insolvent?
  2. Does the Company have any employees?
  3. What are the assets of the Company?
  4. Are there assets that may have a value in the future?
  5. Who are the creditors of the Company and how much are they owed?
  6. Do you have any secured lenders?
  7. Does the Company have a viable business?  Could the business be sold?
  8. Does the business need run off insurance cover to protect the Directors?
  9. Regulatory issues?
  10. Contractual obligations?

At RPG Business Recovery we don’t believe in one solution fits all and many of our solutions are bespoke for each scenario.  We have had great success in finding solutions for businesses where the director initially contacts us to “close down the Limited Company”  we have found solutions which has kept the doors open for business and the loyal employees have retained their jobs.  We have also helped many directors that felt that they were at the end as they had run out of cash and RPG Business Recovery restructured their debts providing much needed breathing space to allow the business to move forward.

There are a wide range of solutions available for many businesses and a business closure is not always the best solution.  The options include many non formal insolvency options as well as the more formal insolvency solutions. We are also able to deal with the Liquidation of the Company if the Company has come to the end of its life.  Both Alan (Mobile 07580 885750 or email acoleman@rpg.co.uk) and James (Mobile 07717 001087 or email jfish@rpg.co.uk) are highly experienced Licensed Insolvency Practitioners and also Business Turnaround experts and can provide you with a free of charge initial advice meeting to explore ALL the options available to the Directors.

The sooner that you contact us for an initial FREE OF CHARGE meeting the more options that are likely to be available to a Director.

Remember – only Licensed Insolvency Practitioners can assist you with formal insolvency appointments (this is a legal requirement) and are best placed to provide insolvency/debt advice.  Licensed Insolvency Practitioners are highly regulated and have professional indemnity insurance.  Unfortunately, there are a number of unregulated “debt advisors” advertising on the web that demand payment for their costs and then have to refer you to a Licensed Insolvency Practitioner for any formal insolvency who may also require payment and you could effectively end up paying twice unnecessarily.  In our experience, many debt advisors provide poor or wrong advice and in some cases encourage Directors to break the law.

RPG Business Recovery is part of Royce Peeling Green Limited (a firm of Chartered Accountants) and was established over 100 years ago (established in 1911).  RPG have offices in Manchester, London and North Wales.  All Insolvency Practitioners at RPG Business Recovery are authorised and licensed by The Institute of Chartered Accountants in England and Wales.

At RPG Business Recovery we highly recommend that Directors should always take advice as early as possible as this gives us the greater chance of being able to save your business and avoid a business closure.  Please feel free to contact us for a FREE no obligation advice meeting or if you prefer you are welcome to contact our Licensed Insolvency Practitioners directly.  Our Insolvency Practitioners are Alan and James. You are welcome to contact either Alan (Mobile 07580 885750 or email acoleman@rpg.co.uk) or James (Mobile 07717 001087 or email jfish@rpg.co.uk) directly.

 

RPG Business Recovery Welcome A New Licensed insolvency practitioner

Licensed insolvency practitioner

RPG are delighted to announce the recruitment of James Fish as a Licenced Insolvency Practitioner at their Manchester office, working alongside Alan Coleman who heads up the Business Recovery team at RPG. Upon the arrival of James at RPG Business Recovery we have featured on The Business Desk to discuss strengthening and growing our Business Recovery team.

The full article is featured below

Insolvency practitioner Royce Peeling Green has recruited James Fish to work alongside Alan Coleman, who heads up the business recovery team at its Manchester office.

Licensed insolvency practitioner Fish, 36, has extensive knowledge of corporate insolvency having previously been a Senior Manager at Begbies Traynor Group Plc, where he spent more than 17 years.

He has worked on a wide range of administration, liquidation and company voluntary arrangement assignments throughout his career to date and has experience of trading companies in the short-term and negotiating and completing sales of businesses and assets as going concerns.

Fish qualified as an accountant in 2010 and has since performed a number of independent business reviews (IBRs) to assess the financial viability of companies and provide options and recommendations to both lenders and directors.

Coleman said: “We are delighted that James has joined RPG as we look to strengthen and grow the Business Recovery team, James will be a great addition to the team.”

Fish added: “I am very happy to be joining the team at RPG as like RPG which was established over 100 years ago, I have similar values as RPG in putting the client first and building on long-lasting relationships with fellow professionals.”

 

Licensed insolvency practitioner

Corporate Insolvency

As a company we take great pride in doing everything we can to keep the clients who come to us operating. We’ve got the experience to be able to see solutions where there may appear to be none, and the help we’ve delivered over the years has left us perfectly placed to remain calm, take an overview and offer a route to the best possible outcome in each individual case. In some cases, however, the problems in question have reached the point at which there is no option but to accept corporate insolvency.

If corporate insolvency becomes inevitable then the services of a company such as RPG Business Recovery become more important than ever. That’s because life will have to go on after the corporate insolvency, and the way in which it is handled will help to ensure that you maintain the goodwill of your customers, your wider reputation and the chance to move on. Most people will be able to understand that circumstances sometimes make corporate insolvency impossible to avoid, but what will impact upon how they regard your business in the future will be how you deal with the situation. Being honest with creditors and other business partners is vital, and coping with the situation of corporate insolvency in general is likely to be simpler and less damaging if you have a thorough understanding of what it actually means.

In simple terms, corporate insolvency arises if:

  • A company cannot pay its debts when they are due, or will soon be unable to do so
  • A company has liabilities which amount to more than its assets

Other circumstances which may lead to corporate insolvency are a creditor who is owed £750 or more serving a formal demand which isn’t paid after three weeks, or a judgement or court order which a company hasn’t met.

The consequences of corporate insolvency will differ from case to case. The following, however, are some of the ramifications which might have to be dealt with following an instance of corporate insolvency:

  • If the directors of a company continue to trade after insolvency has become inevitable, then they may find themselves facing personal claims or being disqualified from directing in the future.
  • If a winding up petition is issued by a creditor, then the company may find itself subject to compulsory liquidation.
  • In these circumstances, the company would no longer be able to sell goods or make payments, unless authorised to do so by the court. The process will also probably involve the withdrawal of banking facilities, as it will be regarded as a default on any loans, with the lenders able to call in any security. A similar response is likely to come from suppliers and customers, as both groups take action to protect themselves.

There are various procedures available for making corporate insolvency a reality, and the option chosen will probably depend upon the point at which the company accepts the inevitability of insolvency, and whether it takes place on a voluntary basis, or following the actions of one or more of the creditors. In the event of a company going into administration or liquidation – during which all assets are converted to cash which is then used to pay off creditors – there is a strict order of prioritisation under which creditors have to be paid off. This begins with secured creditors, moves through the charges relating to the liquidation and ends with the shareholders of the company. This last instance is extremely rare, as it is doubtful that a company with sufficient assets to pay shareholders would be facing corporate insolvency in the first place.

As can be seen from what is only a fairly brief description, corporate insolvency is a very complex process. If you feel that your business may be approaching the point at which corporate insolvency becomes inevitable, then it’s vital to seek the help of experts such as RPG Business Recovery as soon as possible. If insolvency can be avoided, we’ll find a way of doing so, and if not, we’ll work to make the process as pain-free as possible.

Please contact us for a no obligation, confidential and free of charge meeting to discuss the options available to you.

Remember – only Licensed Insolvency Practitioners can assist you with formal insolvency appointments (this is a legal requirement) and are best placed to provide insolvency/debt advice.  Licensed Insolvency Practitioners are highly regulated and have professional indemnity insurance.  Unfortunately, there are a number of unregulated “debt advisors” advertising on the web that demand payment for their costs and then have to refer you to a Licensed Insolvency Practitioner for any formal insolvency who may also require payment and you could effectively end up paying twice unnecessarily.  In our experience, many debt advisors provide poor or wrong advice and in some cases encourage Directors to break the law.

At RPG Business Recovery we are Licensed Insolvency Practitioners and also specialists in providing businesses with turnaround solutions including avoiding liquidation.  Please feel free to contact us for a FREE no obligation meeting on 0161 608 0000 to discuss the options available to your company.  You are also welcome to contact either Alan (Mobile 07580 885750 or email acoleman@rpg.co.uk) or James (Mobile 07717 001087 or email jfish@rpg.co.uk) directly.

RPG Business Recovery is part of Royce Peeling Green Limited a firm of Chartered Accountants established over 100 years ago with offices in Manchester, London and North Wales. All Insolvency Practitioners at RPG Business Recovery are authorised and licensed by The Institute of Chartered Accountants in England and Wales.

 

Corporate Insolvency - RPG Business Recovery

I am thinking of placing the Company into Liquidation, what can I do and not do as a Director

Are you thinking of placing your company into Liquidation? Or are you concerned that your Company has cash flow issues and/or is insolvent, the best advice is to take urgent professional advice from a Licensed Insolvency Practitioner.

Be aware of non-regulated debt advisors that often charge fees for their advice but are unable to become the Liquidator as only Licensed Insolvency Practitioners are able to act in formal insolvency appointments such as Liquidation, Administration or Company Voluntary Arrangements.  At RPG Business Recovery all of our Insolvency Practitioners are authorised and regulated by The Institute of Chartered Accountants in England and Wales (ICAEW).

Taking advice early normally improves the number of options available to the Company and you may be able to avoid Liquidation.

Some of the issues Directors need to consider when their Company has cash flow issues are listed below. This is not and an exhaustive list.

  • When a Director knows that a Company cannot avoid insolvency, the Director should act so as to preserve the Company’s assets and minimise its liabilities.
  • Do not take any action that may result in any creditor being “preferred”. This includes any creditor that has security over assets of the Company.
  • Do not incur additional credit before taking professional advice.
  • Do not sell assets without taking professional advice on value.
  • Do not use assets to settle any debts owed by the Company.
  • Ensure that assets are adequately insured.
  • Carefully document decisions that are made in relation to payments to creditors in situations where you are unable to pay all creditors on time.

Please feel free to contact us if you need any further information including whether you would like a free of charge advice meeting.

Remember – only Licensed Insolvency Practitioners can assist you with formal insolvency appointments (this is a legal requirement) and are best placed to provide insolvency/debt advice.  Licensed Insolvency Practitioners are highly regulated and have professional indemnity insurance.  Unfortunately, there are a number of unregulated “debt advisors” advertising on the web that demand payment for their costs and then have to refer you to a Licensed Insolvency Practitioner for any formal insolvency who may also require payment and you could effectively end up paying twice unnecessarily.  In our experience, many debt advisors provide poor or wrong advice and in some cases encourage Directors to break the law.

At RPG Business Recovery we are Licensed Insolvency Practitioners and also specialists in providing businesses with turnaround solutions including avoiding liquidation.  Please feel free to contact us for a FREE no obligation meeting on 0161 608 0000 to discuss the options available to your company.  You are also welcome to contact either Alan (Mobile 07580 885750 or email acoleman@rpg.co.uk) or James (Mobile 07717 001087 or email jfish@rpg.co.uk) directly.

RPG Business Recovery is part of Royce Peeling Green Limited a firm of Chartered Accountants established over 100 years ago with offices in Manchester, London and North Wales. All Insolvency Practitioners at RPG Business Recovery are authorised and licensed by The Institute of Chartered Accountants in England and Wales.

company into liquidation advice - RPG Business Recovery

How much does a Liquidation cost?

A frequent question we are asked at RPG Business Recovery is how much does a Liquidation cost?

The answer depends on what is involved, for example how many employees that are employed, the level and number of creditors (who you owe money to) and what type of assets that are involved.

In many cases, the costs of the Liquidation are not paid by the Directors or the Shareholders.  The Liquidation costs are more commonly paid from the assets of the Company, subject to the approval of the creditors.

However, at RPG Business Recovery there are certain situations where, although the Directors and Shareholders may not need to pay the costs of the Liquidation, they do have an interest in the costs of the Liquidation, for example:

  1. The Directors have personally guaranteed the debts of certain creditors including the bank and if the costs are kept to a minimum then the return to creditors will be improved and therefore reduce the payment that the Directors may have to pay under their personal guarantee.
  2. The Directors may be the largest creditors because they have loaned the Company money. So keeping the costs to a minimum will improve the return to the creditors including the Director.

At RPG Business Recovery we are happy to provide full details of the Liquidation cost and work on a fixed fee basis providing the Director with certainty going forward.

At RPG Business Recovery we provide a free of charge advice meeting to explore all the options available to a Company. We will cover non-insolvency solutions and insolvency solutions.  It is possible that Liquidation is not the best option available.  Following the free of charge advice meeting, we provide you with an advice letter setting out the options available and the costs involved.  All of our work is bespoke as each Company has different issues/problems and the solutions can differ from one Company to another.

Remember, the sooner you contact us the more options that are generally available than waiting until it is too late.

Remember – only Licensed Insolvency Practitioners can assist you with formal insolvency appointments (this is a legal requirement) and are best placed to provide insolvency/debt advice.  Licensed Insolvency Practitioners are highly regulated and have professional indemnity insurance.  Unfortunately, there are a number of unregulated “debt advisors” advertising on the web that demand payment for their costs and then have to refer you to a Licensed Insolvency Practitioner for any formal insolvency who may also require payment and you could effectively end up paying twice unnecessarily.  In our experience, many debt advisors provide poor or wrong advice and in some cases encourage Directors to break the law.

At RPG Business Recovery we are Licensed Insolvency Practitioners and also specialists in providing businesses with turnaround solutions including avoiding liquidation.  Please feel free to contact us for a FREE no obligation meeting on 0161 608 0000 to discuss the options available to your company.  You are also welcome to contact either Alan (Mobile 07580 885750 or email acoleman@rpg.co.uk) or James (Mobile 07717 001087 or email jfish@rpg.co.uk) directly.

RPG Business Recovery is part of Royce Peeling Green Limited a firm of Chartered Accountants established over 100 years ago with offices in Manchester, London and North Wales. All Insolvency Practitioners at RPG Business Recovery are authorised and licensed by The Institute of Chartered Accountants in England and Wales.

Liquidation Cost - RPG Business Recovery