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We are Company Rescue and Not Clear Company Rescue

Published on : 24th August, 2023 | Updated on : 27th October, 2023

We are Company Rescue and Not Clear Company Rescue!

Clear Company Rescue are offering a solution to your issues by offering to buy your insolvent company.

Does this sound too good to be true?

The actual process is legal as there is nothing stopping anyone from buying an insolvent company in the hopes of turning it around.  However, if the correct course of action is that it should be liquidated, as the debts could never be paid back from current trading, then you have to think why would they do it?!

Why take on the debt and the hassle?  They will of course most likely allow the company to be wound up eventually by a creditor. Check whether you will be charged for this somehow.  Bear in mind that just resigning as a director of a company does not mean that any responsibility for what happened in the past is just wiped away. You could still be disqualified or made personally liable for any of the debts if you have not acted properly.  In addition, under the Insolvency Act 1986, when a company is insolvent the directors have a duty to act in the best interest of the creditors.  If you pay someone to take it off your hands are you actually acting in the best interest of the creditors or yourself?  It is questionable to be sure, and there may be action against you down the road when the company is eventually wound up by the court. Insolvency Practitioners are licensed and under the regulations they have to act in the best interest of creditors.

Be very wary if you somehow manage to keep the assets of the company without paying for them.  This can be what is deemed as a “transaction at an undervalue” and can be reversed up to 2 years later by a liquidator.

Also what about a preference?  If you pay back some monies to a family friend instead of HMRC or BBL then again that can be reversed or voided at a later date.

It goes without saying that selling the company will not absolve you of any personal guarantees that you gave on behalf of the company.

What if you owe the company money?  The new directors will pursue you for the debt.  Directors responsibility under law, if the company is insolvent, is to act in the best interest of creditors.  So they may pursue you personally for the debt.  Many directors are not aware that they owe the company money.  If you have paid yourself drawings and not via PAYE and now the company is insolvent it is highly likely that you owe tax that the company has to pay.  More on overdrawn directors loan accounts here.

Ultimately these sort of schemes and legal gymnastics carry risk. Insolvency is highly regulated and there are no shortcuts.

Do you want to take the risk and give your money to a firm that is unregulated by any professional body?

Remember that company directors are not protected by the law in the same way that general members of the public are.  They are deemed to be “street wise” and knowledgeable.  So there are no cooling off periods, consumer rights, ombudsmen, distant selling rights etc.

Hobbycraft To Launch CVA to Close Stores And Negotiate With Landlords

​According to information obtained by Sky News, Modella Capital, a private investment business that specialises in acquiring struggling retailers, including WH Smith, will propose a company voluntary arrangement (CVA) at Hobbycraft as early as Wednesday. It has been reported that it will be FRP Advisory that will propose the CVA.People close to the plan stated that nine of its shops would be closed with the loss of around 100 jobs, and that 18 more would remain open only if negotiations with landlords over rent cuts work out.According to the individuals, 1,800 staff will be protected as an additional 97 stores will not be impacted by the CVA.Hobbycraft ‎is the latest in a series of High Street names to look at trying to reduce the size of their store portfolios amid rising pressures from online and discount rivals, increased employment costs and a deteriorating outlook for consumer confidence.Expensive High Street stores can be cut back provided that the lease allows for early termination.  If not the only way out is to surrender the lease that can be very expensive or use a company voluntary arrangement (CVA).A CVA allows the retailer to determine its lease obligations which can greatly help the company's cash flow. For more information on why a CVA is a perfect mechanism for helping retailers, read our retailer rescue page  Why not read our case study where we rescued a multi-store retailer

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Hobbycraft To Launch CVA to Close Stores And Negotiate With Landlords

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