Please visit https://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Thursday, 28 February 2013

Sports Direct has bought 114 Republic Stores

Sports Direct, the sports and fashion retailer, has confirmed the acquisition of 114 of the 121 stores of fashion retailer Republic.  This is excellent news for all  the staff and it is expected that 1,500 jobs will be saved.  In addition all the stock and the website of Republic is also part of the deal.

Republic was owned by private equity firm TPG which purchased the chain in 2010 for £300m

The latest deal sees Sports direct add to its current estate of 400 stores.  Earlier last year it bought a number of JJB Sports stores.

Sports Direct was founded in 1982, listed on the London Stock Exchange in 2007 and is a constituent of the FTSE 250.

This goes to show that for some retailers there is over capacity and for others there is an opportunity.  Many HMV stores are still trading with Hilco looking to rescue a chunk of the company.

This news comes on the same day as PWC published a report that found a reduction of nearly 1,800 shops for the whole of 2012, a 10-fold increase on the year before.  Much of this was due to companies shedding stores as the leases came up for renewal.  But retailer collapses have certainly played their part.

For more information on how to close down stores see our retailer pages

Tuesday, 26 February 2013

Government keen to stop suppliers holding insolvent companies to ransom


The Government has tabled proposals for an amendment to Enterprise and Regulatory Reform Bill which will force companies to continue to work with Insolvency Practitioners at their normal rates. This is in response to the actions of suppliers who are holding struggling business to ransom, when entering insolvency procedures.

Currently a supplier, such as a utility companies, can force a termination of a contact if a business enters insolvency proceedings such as administration, and demand higher fees for the same service. This results in reduced payments for creditors.  The plan is that essential suppliers such as IT and utilities will need to continue supply unless released by the court.

 It will also stop those suppliers from seeking an unfair advantage over other creditors by increasing charges and payments as a condition of their continued work.

Consumer Affairs Minister Jo Swinson said: "Businesses are currently closing down because restructuring professionals are unable to secure the essential supplies they need to continue trading whilst they restructure or seek a buyer. This measure will ensure they can secure the supplies they need to deliver the best outcome for creditors and employees."

Under the changes suppliers will have a right to request a personal guarantee from the IP for payments due post-administration appointment.

Of course, this sounds a good idea in theory but you can't really force a company to supply another company. If the business is trading in administration then there is a risk to that supplier of not being able to continue business going forward or maybe not being paid at the end.  So they should be entitled to some sort of "risk premium".  It is always more complicated than first imagined and in reality this is not the main reason that businesses are unable to be rescued.

Monday, 25 February 2013

Cresta Furniture Director Disqualified for 8 years


David Topping, the former director of Cresta Furniture based in Preston, which went into administration owing creditors £1.14m has been disqualified from being a company director for 8 years

He received the directors disqualification for failing to keep adequate accounting records for Cresta Furniture.  In addition he transferred the entiree shareholding of the business in 2008 to a Cyprus registered company where following his resignation he continued to control the company via a stand in director.

When Cresta went into administration in February 2010 owing £1.14m to creditors left many customers without the furniture they had ordered, according to the Insolvency Service.  When the financial records of the company was eventually handed to the administrators the most recent entry was in 2005 and only £56k of £266k of deposits could be identified and verified.  Also the directors loan account was £233k overdrawn.

Obviously having a directors overdrawn account is not a reason to be disqualified but if the company is insolvent then you will need to pay it back.


Charrington Cellars Limited Liquidation Notice

Meeting of the Creditors of the above named Company will be held at The Great Western Hotel, Station Road, Swindon, Wiltshire, SN1 1DH on 6 March 2013 at 1.15 pm

For full details please see this notice

http://www.companyrescue.co.uk/insolvency-notices/charrington-cellars-limited-creditors-voluntary-liquidation-notice

SMS Limited Liquidation Notice

Meeting of the Creditors of the above named Company will be held at The Park Inn by Radisson, Mary Ann Street, Cardiff, CF10 2JH on 8 March 2013 at 12.30 pm

To see the full notice read below;

http://www.companyrescue.co.uk/insolvency-notices/sms-limited-voluntary-liquidation-notice

Friday, 22 February 2013

Salford City Reds seek Company Voluntary Arrangement


Salford City Reds, the Super League rugby club, have said they will try and enter into a company voluntary arrangement in order to pay back its creditors in full over a five year period.  A 100p in the £1 is always popular with creditors so if successful would be a much better alternative to administration.

One main creditor Salford City Council that part owns the stadium will be paid off over a longer time period if the CVA is approved

As always this is an example of trying to do a deal.  It is not usual that some creditors agree to a longer period to be paid back but in the case of the council they perhaps felt there were other benefits to keeping the Reds going...  The council had already invested around £1.5m in the club.

The Reds have lost their first three matches of the 2013 season and lie bottom of Super League.

Deane Amos Group goes into liquidation


Deane Amos Group, a shop-fitting business based in Northampton has collapsed resulting in the loss of 150 jobs.  

The company which has factories in Kingsthorpe,  Queens Park and Round Spinney Industrial estates, has been placed in liquidation.

The company has a number of subsidiary companies, Aluminium Systems, Streets bespoke metalwork, Withey Interiors and Lovell Electrical Contracting, which have been placed in administration
Gary Pettit, administrator for Marshman Price, said he was hoping to find a buyer for these companies which would save some of the jobs.

Mr Pettit said: “There will be meetings later today as we’ve had interest from people wanting to buy the companies.”

Deane Amos group and has worked on a number of high profile building projects including the new Terminal Five at Heathrow Airport, Finsbury Towers and the West Hampstead train station.

Thursday, 21 February 2013

HMRC Sends Letters on RTI

HMRC has sent out letters to thousands of businesses outlining the new changes that Real Time Information (RTI) reporting of PAYE will mean.  If you want to read the guidance before you get sent yours then download it from the link below.

http://www.ksagroup.co.uk/images/rti.pdf

HMRC have not given companies long to prepare for this as they have to assume that everyone is paying all the tax that is due and that they have good systems in place.

If you do owe more PAYE than you are letting on at the stage then RTI will mean that HMRC will know more about any likely arrears earlier.


Wednesday, 20 February 2013

Axminster Carpets in administration announcement

Axminster Carpets Limited the 250 year old carpet company based in Devon has announced that it intends to appoint administrators following difficult trading conditions and financial problems. 

The 250-year old company - based in Axminster in Devon with more than 400 people at its headquarters - blamed difficult trading and resulting financial problems. They have said that they are working with key suppliers and creditors to try and rescue the business.  

Axminster, which produces several styles of carpet and rugs, uses 90% of British wool in its trademark Axminster carpet which is woven using traditional loom production methods.

We do not have any other information at this stage but the company is still trading so a CVA or company voluntary arrangement after administration might be an option.  A CVA could be done prior to the expiry of the notice and an extension but it would be a tight timescale.  

Tuesday, 19 February 2013

Insolvency Service cracks down on rogue operators

There are always some companies and websites out there who encourage directors to break the rules to make a fast fee.   These websites tend to not have any proper contact details and are a bit vague as to exactly who they are.  However, the Insolvency Service is quick to shut them down.

See the latest case.

http://insolvency.presscentre.com/Press-Releases/Three-Ambulance-Chasing-companies-brought-to-a-halt-by-the-Insolvency-Service-687d9.aspx 

Generally if sounds to good to be true then it usually is.  Just remember that in insolvency situations the directors have a duty to act in the best interests of the creditors.  Yes, trying to save the company is often in the best interests of the creditors but it has to be done in a fair way and by the book.

In the end make sure you are dealing with a reputable company who can offer the right advice such as licensed insolvency practitioners.

Monday, 18 February 2013

The New Star at Waltham Limited Liquidation Notice

A meeting of the Creditors of the above named Company will be held at The Hubworking Centre, 5 Wormwood Street, London, EC2M 1RQ on 27 February 2013 at 11.00 am.

To see the full notice please see our webpages below

http://www.companyrescue.co.uk/insolvency-notices/the-new-star-at-waltham-limited-liquidation-notice

Directors disqualified following collapse of their printing company


The directors of Media & Print Investments (MPI), Ben Crozier and Mike Dolan have been disqualified as directors for the next 8 years following an Insolvency Service investigation into the administration of the firm. The business had a turnover of £65m but in 2008 it collapsed


MPI went on an acquisition spree prior to its collapse and bought print firms across the South of England, including Borcombe SP, Butler & Tanner, Friary Press and Goodman Baylis.

So what happened?
The Insolvency Service discovered that it has raised two false invoices amounting to £440,461 and had obtained payment from the factoring company on them.  Also some assets that were subject to fixed charges were sold and the chargeholder was not paid.  This  meant that they (the chargeholder) had lost in excess of £500k


The Insolvency Service said; "Transactions at the latter stages of a company’s existence, when it is insolvent, need to be carried out with care with a view to the directors’ duties to all creditors and the company, not just to themselves."

However, in their defence, they said that the untimely death of the MD of the company whose evidence they deemed critical made for the wrong decision.  They also pointed out that they lost a considerable amount of their own money some £3.4m and their actions were motivated by trying to save the business and its 500 employees.

But as the Insolvency Service said they have a duty to creditors once the business is insolvent.

The pair are awaiting opinion from counsel as to whether to launch an appeal.

Friday, 15 February 2013

Cosalt to call in administrators

Cosalt, the marine safety business based in Grimsby,  has today asked  RBS and HSBC to appoint administrators.  In a statement to the stock exchange they said that they had been unable to find alternative sources of funding to deal with their £17m

Cosalt said it expected administrators to be appointed "imminently" and that following appointment, the administrators will look to sell its assets, including the shares in Cosalt Offshore and Cosalt Workwear, in order to minimise potential losses to the company's creditors.

An agreement for the sale of the shares in Cosalt Offshore has been negotiated with Dunwilco (1793), a company backed by NBGI Private Equity, the majority shareholder of ATR Group.  It is understood that Cosalt Offshore is to continue trading as normal.

 The Cosalt Workwear business will be unaffected and will not be placed into any insolvency process. 

Thursday, 14 February 2013

CVA Case Study - Scottish Recruitment company


One of the directors of a Scottish registered company, trading since 1994 and now trading from premises in Edinburgh, contacted and then appointed KSA in June 2009 to assist with the preparation of a Company Voluntary Arrangement (CVA) to the company’s creditors.



The company provides temporary and permanent personnel placements across a number of sectors including industrial, construction & property, manufacturing, technology, scientific and information technology to name but a few.


The company mainly operates in the central belt of Scotland but has also provided personnel around Europe, Iraq, and other areas of the world.


Over time the majority of the company’s business related to the construction and property sectors, making up approximately 40/50% of the company’s turnover.


The company had invested quite heavily at the end of 2007 and beginning of 2008, taking on larger offices and recruiting 17/19 new sales team members. Almost half of the new staff were recruited to focus on expanding markets like house building and consultancy recruitment.


During 2008 the company started to feel the early effects of the current economic downturn but similar to other companies the company was unaware of the drastic effect it would have on new business, existing business and also debt recovery.


At the end of 2008 the company took steps to reduce costs by making a number of staff redundant and vacating its premises in Glasgow so as to only trade from its premises in Edinburgh. Despite these changes the company was struggling to deal with historical debt of approximately £1.35m owed to unsecured creditors, including approximately £1.1m owed to HMRC.

So how did KSA Group rescue the business?

Wednesday, 13 February 2013

Helping Professional Advisors of Struggling Companies


Date: Tues 19 Mar, 6pm
Venue: Gateley LLP, City Gate East, Tollhouse, Nottingham NG1 5FS
Cost: TMA Members: FREE, Sponsors: £40.00 (after allocated free places), 
Non-Members: £40.00


This is a CPD Certified Event - Guests of KSA Group go Free!  email robertm@ksagroup.co.uk to attend


The activities of Turnaround and Restructuring Professionals are by no means confined to headline grabbing high-street retailers and high-profile football clubs. In these challenging economic times, cases are just as likely to involve an ‘LLP’ as they are a ‘PLC’ with lawyers, accountants, financial advisors and even I.P.’s finding themselves commercially stressed & distressed.


This evening’s event will be chaired by Carl Mifflin, a local, experienced Turnaround & Restructuring Lawyer. In his opening remarks Carl will set the scene for the presentations to follow by sharing some of his own experiences of advising advisors in restructuring situations, and the value of sound advice going forward. The floor will then be taken by a specialist SME Business Advisor followed by a Turnaround Practitioner with a UK-wide reputation; each will look back at cases where professional business providers have needed their input in order to survive. They will then look forward with some sound advice for advisors on recognising potential disasters, rescuing companies, saving jobs and protecting reputations.

There will be time allocated for Questions and Answers.

EACTP: Tyrone Courtman of Cooper Parry LLP, President of the European Association of Certified Turnaround Professionals will briefly address the meeting on the new Europe-wide Turnaround Management Accreditation programme being rolled-out in 2013 across the UK and Europe.
Following the conclusion of the formal part of the evening, attendees will be invited to continue their discussions and enjoy some quality networking; refreshments have been kindly provided by this evenings sponsor: KSA Group Ltd – proud to be a TMA (UK) Corporate Sponsor.


Speakers:
Daryl Woodhouse, Principal - Advantage Business Partnerships Ltd.      
Daryl has a background at national senior leadership level supporting SMEs in the banking and finance sector. Following the entrepreneur in him, he founded Advantage January 2012, a fast growing coaching, mentoring and training company to professional service advisors and owner managers of small and medium size businesses. He gets his kicks from being around fellow business owners, helping them be more successful whilst building the Advantage team from strength to strength.
Daryl Woodhouse                              Advantage
Advantage Business Partnerships Ltd is a young, fast growing business growth coaching, mentoring and training firm. They help high growth and struggling businesses to go further and faster with their experienced team and programmes affordable to very small firms, whilst being high impact also to much larger SMEs. ABP has built a solid base of strategic partnerships with referral networking, and typically helps businesses on all aspects of sales, strategy, marketing, leadership & people skills, operational efficiencies and growing profits.



Keith Steven, Owner & CEO - KSA Group Ltd.
Keith Steven of KSA Group Ltd has been rescuing and turning-around companies since 1994; he has worked for insolvency firms, turnaround funds and venture capital investors. Keith formed his own turnaround practice, KSA Group Ltd in 2001, and he is acknowledged as an expert in the delivery of CVAs for SME companies and partnerships faced with financial difficulties.Keith Steven
KSaDrawing on case studies with a local flavour and where professional service providers have had to be rescued and restructured, Keith will explain and illustrate the variety of ‘turnaround tools’ applicable in such situations. He will share his considerable knowledge and experience within ‘LLP turnarounds’ so that those present will be better able to recognise, and deal effectively with, potential cases of distressed firms.
KSA Group is one of the leading turnaround and insolvency specialists in the UK, with offices and representatives in London and across the country. Their priority is company rescue, not corporate closure.
KSA Group developed the UK's first on-line turnaround and support site, www.companyrescue.co.uk, with over 1,500 pages of free information, PDF guides, FAQ's, flowcharts and case studies - information freely available, and of great value, to accountants, lawyers, bankers, advisors and of course directors of /investors in struggling businesses.


KSA Group is delighted to sponsor this evening’s event and is proud to be a Corporate Sponsor of TMA (UK).

Hotel, Bar and Restaurant for sale


FOR SALE HOTEL, BAR AND RESTAURANT


The Ivy Hotel and Harvey’s Restaurant
Moormead Road
WroughtonSwindon SN4 9BY


The Ivy Hotel and Harvey’s Restaurant comprises a former Victorian farmhouse linked by a conservatory to a modern, two storey, accommodation block known as Willow House. A detached building, known as Ridgeway Hall, provides various conference and meeting rooms. The property has a total of 32 en-suite bedrooms and the main building includes Harvey’s Bar and Restaurant providing approximately 100 covers.


Location:
The property is located off the A4361 Moormead Road, east of the Wiltshire village of Wroughton. A shared driveway provides access to the property and a neighbouring care home which lies to the east. To the south west is Ridgeway Hospital. Swindon town centre lies approximately two miles to the north of the property.

Description:
The hotel provides thirty-two en-suite bedrooms together with reception hall, front desk and rear office.
Harvey’s provides a fully fitted bar and restaurant, providing approximately one hundred covers.
The property also provides a number of conference and meeting rooms, together with stores and lavatories. Externally there is an area of car parking and landscaped gardens.


Rateable Value:
The premises are described as “Hotel and Premises” within the Valuation Office Agency’s 2010 Rating List, with two rateable values totalling £53,000.


Services:
We understand that mains water, gas and electricity are either connected or available. We further understand drainage is via a septic tank. We do, however, advise all interested parties to make their own investigations and enquiries regarding services.


Tenure:
The hotel, bar and restaurant has recently ceased trading and is available freehold with vacant possession together with all contents.

Price:
Offers sought by proposed Administrators.
Energy Performance Certificate
To be provided upon application.
Viewing:
By appointment with the sole agent; please contact Amy Thelwell BSc (Hons), quoting reference ‘6237 – The Ivy Hotel’.
Charterfields Limited, 4 Castle Court, London EC3V 9DL Tel: 0870 043 4170 Fax: 0870 043 4172
Email: amy.thelwell@charterfields.com
www.charterfields.com

Tuesday, 12 February 2013

Republic in administration

Republic looks like it is the next retailer to fall.  The chain has 121 shops and employees 2500 people.  There were rumours last week that the business had fallen into difficulty because KPMG had been brought in to advise on how it could shed some of its stores.  In the past, this news would not have lead to rumours of its demise but this last Christmas trading period appears to be have been a game changer with so many retailers failing.  Ernst and Young are likely to be lined up as administrators according to sources.  We presume that KPMG are the auditors that would explain why they cannot be the administrators.

High rates, low consumer spending, car park charges, too many stores, competition from supermarkets, Oh and the Internet are all factors in many retailer's difficulties.

Could a CVA or company voluntary arrangement have saved this latest business?  Perhaps, but the business needs to be viable longterm, and the lenders on side, otherwise administration is the likely outcome.

The retailer  is owned by private equity group TPG

RTI still on track but many business owners unaware

HMRC  says the programme ( Real Time Information or RTI ) to change the way PAYE deductions are made and reported for all business is on track and “going well”.

However, a Federation of Small Businesses survey of 1,700 members showed a quarter did not know about the changes and only 16pc were prepared!  Given that they will have to report to the HMRC every time they pay an employee whether it is weekly, monthly or the occasional shift this is very worrying. The taxman is hoping to reduce a £3bn payments backlog.   In order to do the online reporting the businesses will of course have to have a computer and not all businesses use them.  Yes, businesses with up to 9 employees will be eligible for free software but they will still need to get the computers.  Supposedly businesses will see a £300m saving in reduced administration costs once the system is up and running but the initial time and investment is not something that many small businesses can spare at the moment.

HMRC wants to have the new set-up, which is linked to the introduction of the new Universal Credit system, working smoothly by October followed by a penalty regime for late or inaccurate filing.  Penalties are likely to be in place as early as next year.

If your business is in arrears with PAYE then you will need to take action now.  See our page on RTI and its implications for struggling businesses.

Monday, 11 February 2013

Notts County to defend winding up petition today

Notts County have revealed that HMRC issued them with a winding up petition and the hearing is today!  They have vigourously denied that they owe HMRC any PAYE and VAT and have appointed Counsel to defend their position.

In a statement they said; "The club can state, unequivocally, that the business is completely up to date with all VAT and PAYE monies and that this action is regarded by the board as both disruptive and damaging," read a statement.

"Unfortunately, we had no option other than to instruct legal counsel to represent us, but we fully expect this issue to be resolved in our favour once the judge has before him all the facts."

The problem for the club is that they will have their bank account frozen until the outcome can be determined.  The petition was not advertised which implies that the club did manage to get an agreement not to advertise while the matter was settled.  Obviously no agreement was arrived at!

If your business is facing a winding up petition and you feel that there is no case for it then talk to a solicitor or barrister.

We know a solicitor who is also a barrister so can make representations for a lower cost.  See his page
winding up petition solicitors.



Friday, 8 February 2013

KSA Group Insolvency Notice

Business Negotiation Solutions Limited

A Meeting of the Creditors of the above named Company will be held at The Hubworking Centre, 5 Wormwood Street, London, EC2M 1RQ on 15 February 2013 at 10.15 am


See full notice below

http://www.companyrescue.co.uk/insolvency-notices/business-negotiation-solutions-limited-s98-liquidation-notice

KSA Group files 4 CVAs to restructure a group of companies


Even when a company’s accounts and records are very poor and there is a tight timescale KSA Group can rescue a business!


We were approached by a South East-based IT and logistics group.  The directors had heard about our work with two previous clients and as such wanted us to help them.

The group came about as a result of a business purchase by a joint venture of two companies.

Group sales were planned to be £25m, however , as below, targets were missed due to loss of contracts.  Sales were sub £12m when we arrived.

A  number of separate companies were created to purchase the assets, handle the employees and there were a couple of associated companies that provided services to the others.   During the acquisitions a finance director was brought in who did not manage the accounts properly and there was poor compliance with HMRC.   HMRC were owed some £2m across the group.  RBS was providing and invoice finance of £1.5-2.2m

However, due to a fall in revenues caused by loss of a key contract with a government agency the whole group was under pressure.  A winding up petition was issued against one company in the group which caused significant time constraints.



So what did KSA group do?

Read the CVA case study and find out

Thursday, 7 February 2013

Cosalt in Administration Threat


Cosalt, the marine safety business based in Grimsby,  said today it is likely to go into administration by the end of February unless it can reach an agreement with its banks over its debts of £17m reported the Business Desk

The firm said that it has been unable to find alternative sources of funding and it is looking to sell its two main operations, Cosalt Workwear and Cosalt Offshore.  However, the company needs the backing of its lenders and pension trustees to carry on trading.


In an update today, it said its banks, Royal Bank of Scotland and HSBC, had raised concerns that it would not have the cash available to continue to trade during a lengthy sale process.

It said in a statement: "The company has had and continues to have extensive discussions with existing and potential funders but no alternative source of funding is currently available to the group.  In the event that the banks conditions cannot be met, in the absence of the banks agreeing an alternative course of action to enforcing their security, the directors consider that Cosalt plc (the parent company of the Cosalt Group) would be likely to enter insolvency proceedings on or before 28 February 2013."

Wednesday, 6 February 2013

CVA saves a multi site retailer in the North West


This case study is an interesting one because it’s an example of a multi location retail operation and demonstrated that a CVA could considerably restructure the business, including termination of leases on non-profitable locations and handle the resulting redundancies.

Incorporated 2nd March 1977, the client is a branded clothing retailer in the North West of England.
The director contacted KSA Group after reading our website.  A meeting was in April.
KSA were appointed to assist the company on 6th May 2011.
In the year to 31st March 2010 the company turnover was  c£2.4m whilst it made a loss of £170k

Read our CVA Case Study  to see how we saved this company

Klarius close to administration


Klarius, the automotive parts business, based in Manchester, has filed a notice to appoint administrators with KPMG lined up, putting more than 1,000 jobs at risk.  This action gives the company 10 days protection from its creditors to find a solution.

Read our page on what a notice of intention to appoint administrators means.


The company is one of the largest European manufacturer of aftermarket car parts and makes 90,000 parts from five manufacturing plants - three in the UK, one in Spain and one in Germany - which employ 1,200 people.

The group has not filed annual accounts at Companies House since October 2011 when figures for 2010 showed a pre-tax profit of £23.3m on sales of £202m.

Last year Klarius was ranked sixth in a list of privately-owned manufacturers with the biggest international sales published in The Sunday Times HSBC International Track 200 report.

Tuesday, 5 February 2013

Real Time Information (RTI) - Half of small businesses never heard of it !


46pc of companies have never heard of the new system for paying over PAYE , which is called Real Time Information (RTI), a survey conducted by Crunch Accounting found.

RTI means that employers must send information to HM Revenue & Customs every month on how much each employee has been paid and how much tax has been deducted under the PAYE system.

One in three companies said they were only “vaguely aware” of RTI, while 81pc admitted to being unprepared for it.

These statistics are worrying and show just how unprepared small businesses are.  They will need to invest in new payroll software or ensure that any outside provider of payroll services are compliant.  Fines will start in 2014.  What is more under reporting in order to save cash in the hope that they will be able to afford any adjustment at the end of the year will no longer be an option.  A recent article in the Telegraph highlighted the fact that RTI may tip struggling companies over the edge


HMRC says that RTI will provide a much needed update for PAYE.  However, it should be remembered that the system is designed to work with the Universal Credit that will be brought in by the government later in the year.  For universal credit to work properly it will need to be in sync with RTI so that benefits can be accurately assessed and paid on time.

If your business is behind on PAYE now would be a good time to address it before you get embroiled in trying to implement RTI.

Monday, 4 February 2013

Personal guarantees in liquidation situations


We do sometimes get asked whether personal guarantees can be voided if the business becomes insolvent or goes into liquidation.  Unfortunately, this is not the case as it is well...personal.  As such, has nothing to do with the company. It is obvious when you think about it.  Leases on shops are quite often backed up with personal guarantees as are company bank accounts or hire purchase agreements

Only bankruptcy can stop you having to pay out on a personal guarantee.  Otherwise it is best that you pay it or you may be able to come to some sort of agreement.

One should also be mindful that if you start to pay back a debt that has a personal guarantee at the expense of other creditors it could be perceived as creating a preference - i.e. making one creditor better off than another.


Please see our page on Personal Guarantee in Insolvency

Small Businesses in Newcastle Fear Closure

In a recent recent survey by the Viking Small Business Barometer one in five small firms in Newcastle think they may have to close down by the end of the year.  In addition the survey found that 10% of small firms did not expect an increase in profits.

The survey asked businesses in the last quarter of 2012 about their views for 2013.  The Viking Small Business Barometer speaks to the same 1,000 small business-owners and managing directors, across 15 different sectors, every three months to pull together the quarterly tracker report.

Sean Bailey from Viking said: “The findings of the report offer an insight into the current conditions faced by small businesses in the area.

“It demonstrates that the recent downturn in economic growth has had an effect on SMEs, leaving them with a bleak outlook for 2013.

So what are your options if you are a small business in the area?

First of all, if your business is suffering cash flow problems or debts then you must seek some business debt advice.  Most advisers will not charge for an initial meeting to go through the options.

KSA Group have an office in Gateshead where Eric Walls will be more than happy to talk to business owners in the area about what the options are.  These options can be company rescue, close the company, administration, or voluntary liquidation.

Gateshead Office 
C12 Marquis Court, 
Marquis Way, 
Team Valley, 
Gateshead, 
Tyne & Wear 
NE11 0RU 

Telephone: 0191 482 3343
Facsimile: 01289 309 429 

Google Map

Call us to see if we can help

Friday, 1 February 2013

KSA Group Liquidation Notices

Liquidation Notice for Wansford Associates Limited T/A Wansford Digital

A meeting of the Creditors of the above named Company will be held at the office of KSA Group Ltd, C12 Marquis Court, Marquis Way, Team Valley, Gateshead, NE11 0RU on 11 February 2013 at 11.00 am.

See full notice below

http://www.companyrescue.co.uk/insolvency-notices/creditors-voluntary-liquidation-notice-wansford-digital


Liquidation Notice for Integrity IT (UK) Limited

A Meeting of the Creditors of the above named Company will be held at the offices of KSA Group Ltd, Tower 42, Level 7, 25 Old Broad Street, London, EC2N 1HN on 13 February 2013 at 12.00 pm.

See full notice below

http://www.companyrescue.co.uk/insolvency-notices/integrity-it-uk-limited-liquidation-notice

Seymour Pierce in administration threat

Seymour Pierce,  the famous and long established City broker is in crunch talks to with possible investors to prevent it falling into administration.  It is reported that the Grant Thornton have been lined up as possible administrators.  From these reports they may have filed a notice of intention to appoint administrators to give them some protection from creditors for 10 days.  A notice of intention may be extended if a buyer is close to a deal.  The company said it was confident that a buyer could be found, maybe over the weekend.

Seymour Pierce Holdings made a pre-tax loss of almost £600k in the year to September 2011, according to its latest published accounts. The board said at the time this was “a reasonable result in the light of the extremely difficult trading conditions”.

It is understood that their rivals Panmure Gordon were looking to inject some cash but the deal fell through.

The collapse in deals since the financial crisis has hit a number of well known brokers and advisor such as Collins Stewart, Hoare Govett and Evolution, which have been taken over.
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