Every business is different, however there are particular issues that construction businesses face which are unique to the sector.
Often with low margins and tough trading conditions, cash flow can be a problem. Below is a list of problems we’ve seen happen in the industry:
It might be that an additional loan is not what is required…. As turnaround practitioners, our specialists can help tackle these issues with you to get your construction business back on track. We can go through all the available options, like expert assessment of the issues your company faces, improved financial reporting, Time to Pay deals, CVAs and pre-pack administrations. We can also find finance for construction companies in distress.
We also have industry specific turnaround experts who can act as non executive directors, chairman or turnaround managers. We have turned around construction companies from £500k to £25m sales.
Call us on 0800 9700539 for free expert advice and a talk through your options. We can visit you onsite to discuss your specific situation.
Written ByKeith Steven
Turnaround Director
Keith is the Turnaround Director of RMT Accountants & Business Advisors. Prior to being acquired by RMT his company KSA Group has undertaken more than 300 CVA led rescues. Read our case studies to see how.
Claire’s and The Original Factory Shop in Administration Threat
Update 5th January 2026For the second time Claire's has filed an intention to appoint administrators and the owner Modella Capital has also done the same for the Original Factory Shop. This puts 2500 jobs at risk and is another blow to jobs in the High Street. Modella Capital bought the chain out of administration only in September 2025. In a statement Modella said there had been a huge drop off in trade and that administration was the only option.----------------------------It has been reported that Claire's, the fashion accessories chain, has filed an intention to appoint administrators at the court today. Interpath have been lined up to try and rescue the company, the move puts 2,150 jobs at risk.The company has 278 shops in the UK and 28 in Ireland but has been struggling with falling sales and fierce competition. The US arm of the company has already gone into Chapter 11 bankruptcy protection.Claire's said all outlets will continue trading while administrators at Interpath said they will "assess options for the company" once appointed.Mr Cramer, the chief executive, said: “This decision, while difficult, is part of our broader effort to protect the long-term value of Claire’s across all markets.”Mr Wright at Interpath said: “Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.”The UK chain sits as part of the Claire’s empire, which stems from a base in a suburb of Chicago, Illinois.Claire’s French business, which has 239 stores, was forced to call in receivers last month.As such, it isn't really a UK specific problem. The main issue has been that the teenagers and "tweens" who have been the bedrock of Claire's customer base worldwide now buy their "accessories" online, via influencers and from the likes of Temu and Shein.Many retailers have used CVAs to try and reduce costs but in the case of Claire's the problems were probably too deep and the benefit of exiting a few leases or reducing rents was not going to be enough.A loan of £355m is due to be paid back in December 2026 and it is likely that the lenders ( who are secured so not bound by a CVA ) felt that time was up. The last 3 years the company has lost £25m and turnover has fallen to £137m
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TGI Fridays Expected To Do A Pre Pack Administration
Update 5th January 2026It is understood that TGI Fridays is likely to be sold next week in a Pre Pack Administration. It is reported that about 15-20 stores may close. This will mean the majority of the estate will disappear. It is expected that there will be hundreds of redundancies amongst the 2000 staff.Sugarloaf acquired the chain from Breal Capital and Calveton UK in October of this year and immediately sought to sell it. However, it has been reported that the company filed a notice of intention to appoint administrators on the 5th of December. Could it be that TGIs could go into a CVA? The CVA would only really work if the main problem was high rents or just certain outlets needed to be closed down. The money that it owes its lender is no doubt secured so they have the power to call in administrators at any time.Without knowing more about its exact financial position it is hard to say.If the company does go into administration it is likely that a number of the restaurants, which are making money, will be snapped up by other restaurant groups and may continue to trade under the TGI brand. If not then the owners will take advantage of their prime locations.
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Company or Business Bankruptcy
What is Company Bankruptcy? The term "company bankruptcy" is most usually heard in relation to companies in the USA. Under Chapter 7 of the U.S. Bankruptcy Code, the company stops all operations and goes completely out of business. A trustee is appointed to liquidate (sell) the company's assets, and the money is used to pay off debt. Only individuals in the UK go bankrupt whilst companies go into what is termed terminal insolvency which is either administration or liquidation. When should you consider company administration? Administration is a powerful formal insolvency procedure if there is a viable underlying business but the company has severe cashflow issues and pressure from creditors. The principal aim is to rescue the business as a going concern and this may involve the selling of the business. When should you consider company liquidation? So, if your company is insolvent and is no longer viable then the correct procedure is either an administration or a creditors voluntary liquidation. The directors decide that the business has no future and cannot pay its creditors. The directors then convene a meeting of the company’s shareholders, who pass a resolution to place the company into liquidation and appoint an Insolvency Practitioner to act as the liquidator. What is the process of putting a company into liquidation?Board Meeting: The directors convene a board meeting to assess the company's financial position and determine if it is insolvent. If they agree that CVL is the appropriate course of action, they will pass a resolution to initiate the process. Appointing an Insolvency Practitioner: The directors must appoint a licensed insolvency practitioner (IP) to act as the liquidator. The IP's primary responsibility is to oversee the liquidation, realize the company's assets, and distribute the proceeds to the creditors. Shareholders Meeting: Usually just before the creditors’ meeting where the shareholders agree to place the company into liquidation Creditors' Meeting: The IP will convene a creditors' meeting, typically within 14 days of the board meeting, to inform the creditors about the company's financial position, the proposed CVL process, and to seek their approval. At this stage the creditors get to see what is termed an estimated Statement of Affairs (SofA). This document sets out what the position of the company is, what it owes it creditors and whether there is likely to be any dividend paid out. Using the deemed consent process there is no need for an actual creditors meeting. Notices go out about the proposed liquidators and if no objections are raised within 14 days, then the liquidation process starts.Bear in mind that if you do not act promptly then you will find that your creditors will force you into liquidation. This is what is termed compulsory liquidation and it starts when a creditor issues a winding up petition. This is a court based procedure and is generally riskier for directors and is more hassle and stress as the process can take upto a year. Personal Bankruptcy If your business is not being conducted via a company, i.e you are a sole trader or a partnership, then you will need to go bankrupt, if there is no prospect of you being able to pay your creditors (owed more than £5000). This option places personal assets, like homes, vehicles, or even personally owned business properties, at risk. Similar to company liquidation, personal bankruptcy involves selling off assets and allocating the proceeds to creditors. Typically, after one year, most remaining unsecured debts are discharged in a bankruptcy case. Alternatives to Liquidation or Bankruptcy For individuals, or partners, the alternative is what is called an Individual Voluntary Arrangement. This allows a proportion of the debt to be paid off over a 3-5 year period. The creditors need to agree to this by a 75% majority by value.For companies the alternatives are administration or a company voluntary arrangement.
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LK Bennett in Administration Move
LK Bennett filed a notice of intention to appoint administrators before Christmas. As such, it looks like the company is going into administration for the second time. What has happened? Following the last administration the firm was ultimately acquired by Rebecca Feng, who ran the brand’s franchises in China, through Byland UK. The estate was reduced to just 9 stores.Following the acquisition, the firm initially experienced growth, expanding into new categories such as bridal wear, opening stores in key locations, returning to profitability and moving its flagship store and headquarters to Bond Street in London. However it looks like its success was shortlived.LK Bennett, has 9 stores in the UK and employs 500 people. The company are struggling financially, and looking to close if no new funding can be found.Problems on the High Street have been well documented recently with high rents and rates, uncertainty, and increases in minimum wages.The Duchess of Cambridge has been a big fan of the brand and so to have been many middle class affluent shoppers. Ms Bennett was described as the "queen of the kitten heel" However this time it looks likely to be gone forever on the High Street.
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Monthly Insolvency Statistics: November 2025
There were 1,866 registered company insolvencies in England and Wales in November 2025. That’s 8% fewer than in October and 7% fewer than in November last year. Overall, insolvency numbers in 2025 have generally been slightly higher than in 2024, but still below 2023, which recorded the highest levels in 30 years. In November 2025, these cases included 250 compulsory liquidations, 1,461 creditors’ voluntary liquidations (CVLs), 136 administrations, 18 company voluntary arrangements (CVAs) and one receivership. Compulsory liquidations were down sharply compared to October and were also below last year and the 2024 monthly average. CVLs were also lower than both October and the 2024 average, while both administrations and CVAs increased compared to October. Looking over the past 12 months to the end of November 2025, around 1 in every 189 companies entered insolvency (52.9 per 10,000 companies), which is slightly down on the previous 12-month period. Using this rolling annual measure helps smooth out monthly fluctuations and shows the broader trend.Creditors’ Voluntary Liquidations (CVLs)CVLs made up 78% of all insolvencies in November 2025. Numbers fell by 7% compared with both October 2025 and November 2024. So far in 2025, average CVL levels are broadly similar to 2024. CVLs had previously peaked in 2023 at the highest level since records began, after rising for several years, but fell in 2024 for the first time since 2020. Compulsory LiquidationsCompulsory liquidations dropped 21% from October and were 10% lower than November 2024. However, looking at 2025 so far, monthly averages are still around 17% higher than in 2024. Levels in 2024 were already the highest since 2014, following sharp increases from the very low levels seen during the pandemic when restrictions limited winding-up action. AdministrationsAdministrations were up 12% on October and 5% higher than November 2024, although the 2025 monthly average remains below 2024 levels. After hitting an 18-year low in 2021 during the pandemic, administration numbers have gradually risen and are now broadly similar to pre-pandemic levels. Company Voluntary Arrangements (CVAs)CVAs increased by 6% compared with October and were 29% higher than November last year, although absolute numbers remain low compared to historic trends.In Conclusion The fall in insolvency figures is a relief for policy makers but anecdotal evidence is that HMRC were taking a soft line against companies that owed tax in the last few months. The budget uncertainty persuaded companies not to take risks and keep costs under control that may have also contributed to the fall.Find the full release here.
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