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Two liquidation case studies involving two connected companies

Two connected companies working in the cleaning and removals industry both fell into liquidation due to a number of problems. It is the worst case scenario but we can identify a couple of reasons why this happened:

- Too long a delay between actions, giving creditors more time to become impatient
- Too many eggs in one basket bringing down two companies

Click below for the full case study:
http://www.companyrescue.co.uk/case-study/liquidation-case-study-two-connected-companies

Tomlinson lays into RBS and their Global Restructuring Group

Lawrence Tomlinson, the government advisor and entrepreneur, has accused the Royal Bank of Scotland  of acting like a "vampire" that sucks cash out of profitable businesses.

He made this claims whilst appearing before the Treasury select committee yesterday. He told MPs he had gathered evidence from hundreds of businesses that suggested RBS' Global Restructuring Group (GRG) turnaround division had been driving profitable firms out of business and seizing their assets.  They achieved this by withdrawing lines of credit from healthy firms and increasing fees hence making them insolvent and so seizing their assets.

However, Sir Andrew Large, the sometime Deputy Governor of the Bank of England and more recently author of a report into the way RBS lends to SMEs, said that in the course of his own inquiry he had uncovered no hard evidence to support the allegations made by Tomlinson, but he nevertheless considered them plausible.

Mr Tomlinson does have an axe to grind in that his own firm, LNT Group, had difficulty refinancing with RBS so he is not completely impartial.  But on the balance of probabilities it does look as if RBS were perhaps a bit too keen to say that a business was no longer healthy or did not have a viable future.  It should be noted that banks are often kept in the dark as to the exact state of a business as directors sometimes have personal guarantees so they pay them rather than their suppliers or HMRC.  As soon as the bank gets a whiff of a risk to their lend they play their ultimate card which is to call in the administrators.  Of course, one area of concern here is the fact that there is a club of firms otherwise known as "the bank panel" who are guaranteed all the work from the bank.  Is this fair??

Following Mr Tomlinson's report, RBS chief executive Ross McEwan brought in the law firm Clifford Chance to examine the claims. The Financial Conduct Authority has also launched a probe.

New CVA case study - global point of sale company rescued

A Company Voluntary Arrangement was approved for a global point of sale company working for the fast food industry.

Due to a few problems with cashflow, this viable company felt a CVA was the best option to maximise its creditors' interests.

Read the full case study here:
http://www.companyrescue.co.uk/case-study/cva-case-study-point-of-sale-company-for-the-fast-food-industry

Guide to Members Voluntary Liquidation

"Our company is solvent but we need to wind it up - what is the solution"?


A guide to Members Voluntary Liquidation (MVL)

Got a company that has cash, assets, few liabilities and no future purpose? Then MVL could be the most cost effective solution to your problem. If the company has cash or properties that can be turned into cash then MVL can be used to distribute the liquid assets to shareholders for example. The company can then be dissolved and directors' obligations removed.

Ok, what is an MVL"? 
This is a voluntary procedure to wind up the affairs of a SOLVENT company. If your company has cashflow problems or creditor's actions against it, then this is not for you!!

Click here for further details

http://www.companyrescue.co.uk/close-limited-company/mvl-members-voluntary-liquidation

Mary Portas’ Kinky Knickers firm in administration

The underwear maker, Headen and Quarmby, has gone into administration after ‘orders had fallen sharply’. The company featured in the channel 4 TV show ‘Mary’s Bottom Line’ in 2012, working as Mary Portas’ manufacturer for her ‘Kinky Knickers’ range. 

Mary’s aim was to bring back the textile industry to former industrial towns to inject some much needed growth and revival. However, last week it was revealed the firm was put into administration losing 33 jobs. 

Headen and Quarmby has previously supplied high street and online retailers such as House of Fraser and ASOS. Upon hearing the news, Mary Portas commented she was ‘heartbroken’ and ‘completely blown away’. She knew there were problems with cashflow but believed the company was still viable. The manufacturer suffered from a poor Christmas sales period as well as a significant drop in orders after the festive break. 

The administrators, BDO, hope to secure a sale in the near future and are inviting businesses to enquire.  

We now have 80 case studies!

We've rescued hundreds of companies by restructuring, stopping legal actions and arranging debt payments. We now have 80 case studies on our website which shows Company Rescue does exactly what it says on the tin.

You can browse all of them here: www.companyrescue.co.uk/case-studies


What if you can't pay corporation tax owed?

The fact that corporation tax has been levied on a company means the company has made a profit but as always, the date that it is due is sometime after the event and much can happen in a year.  If you are struggling with paying any taxes, including corporation tax, then talk to us as we have lots of experience with helping companies in relation to their dealings with HMRC.

Please see our page on What if I can't pay corporation tax for more details

Signs of economic growth in the North East

Latest research from the Association of Business Recovery Professionals (R3) shows that businesses in the North East, Yorkshire and Humberside are succeeding in many areas of growth, including increasing profits, market share and volume of sales.

According to R3’s Business Distress Index, 63% of businesses in the region are expanding one way or another, a sign that owners are becoming more confident in the economic climate and have the necessary resources to do so.

Steve Ross, the chair of the Association, commented “the latest results are a welcome sign that the recovery is bedding in and gaining ground, and after such a prolonged period of stuttering growth - if any at all - it’s very nice to be able to talk about good news for a change.”

There have been predictions of a weary year for SMEs as many are unable to access the appropriate funding or do not know alternative sources available. However, despite these issues, a recent report from the North East Chamber of Commerce (NECC) revealed businesses were feeling more confident than ever.

While there are still a third of businesses struggling financially, those affected needn't be worried if the business acts now and considers ways to change, restructure, tackle debt and improve business strategy.

Overall, this is great news for SMEs. Hopefully, we will be seeing more surveys with much the same to report across the UK throughout this year.

KSA Group features in Undercover Recruiter

KSA Group has written an article about cost-cutting and improving cashflow for the popular site, Undercover Recruiter.

You can view it here: http://theundercoverrecruiter.com/cut-costs-improve-cashflow-recruitment/

Construction firm, Mivan, is in administration putting almost 300 jobs at risk

Nearly 300 jobs are at risk after one of Northern Ireland’s biggest construction firms, Mivan No. 1 Ltd, has gone into administration. The outfitting and building firm has previously worked with the QE2 transatlantic liner, Disleyland Paris, Universal Studios in Florida and Scottish Parliament.

Chief Executive, Dr Ivan McCabrey has blamed the intense competition in the construction industry for the drop in business as well as the ‘intense pressure on profit margins and cash reserves’ directed to the larger companies. After talks of a merger had failed to materialise, the Antrim-based company appointed Deloitte as administrators.

McCabrey said, ‘It is with regret therefore; that the directors have today sought the protection of administration in order to preserve the future options of the business.’

Sources reveal the company lost around £50 million between 2009 and 2011, which led to a complete restructure in 2012. However because of difficult, economic conditions, this change failed to work.

With the very recent news of the construction industry fighting back, this is a sad day for many as Mivan has shown there are still huge challenges in the sector.


We are not involved in the administration and questions should be directed to Deloitte who are handling the administration.

If you are an employee of the business, and you're worried about what might happen in the future, then please listen to the video below as it will tell you your rights as an employee of a insolvent business.  There is a link at the end of the video to the Government website which expands further on what you need to know.







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