0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Specialist insolvency advice and guidance for manufacturers

Affected by Covid-19? Immediate Rescue Or Closure Options Available

FAST Free Director Advice & Support, With 78 offices Nationwide our Licensed Insolvency Practitioners can Help Today.

Updated: 14th May 2020

Help for manufacturing companies threatened by insolvency

Figures released in 2014 by the Office for National Statistics show that 25% of jobs in the UK were in the manufacturing industry in 1978. By 2014 this figure had fallen to just 8%, although productivity in the industry increased.

‘Lean’ methods of manufacturing have made better use of resources, reduced waste and focused on smoothing out the manufacturing process at a basic level. But despite this, insolvencies within the industry are relatively high, with companies finding it difficult to remain solvent once financial problems arise.

At the end of the first quarter 2016, the manufacturing industry had already experienced 333 insolvency events. So are industry-specific problems causing firms to decline, or does the blame lie more with a changing global economy?

Competition from emerging markets

Emerging markets in the east are competing on price, driving down profitability for companies in established manufacturing countries, where firms may be unable to compete on price alone.

Many firms in the UK use high levels of customer service to differentiate themselves, perhaps moving into advanced technology sectors to offer a solution-based combination of product and service.

A complex financial environment

Manufacturers must deal with various external elements over which they have no control, but that have a detrimental effect on their business, including:

  • Currency instability, particularly since the financial crisis, but also following the Brexit referendum
  • The emergence of new markets intent on driving down prices
  • The need to invest heavily in new production techniques as part of the drive towards ‘lean’ manufacturing
  • Supply chain instability, where delays and interruptions cause long-term financial issues for those involved

With many production processes being outsourced rather than carried out in-house, manufacturing firms in the UK are focusing on ideas and innovation to drive business growth.

Professional assistance when your company is threatened with insolvency

If your manufacturing company is struggling to stay afloat and you fear insolvency, there are several potential routes that could help you survive. Real Business Rescue has many years of experience in helping manufacturers to avoid liquidation, and return to profitability for the long-term.

Our contacts with traditional and alternative lenders, along with a detailed knowledge of the manufacturing industry, means you get the best recommendations for funding your business.

Seeking professional help should be a priority when the company’s financial situation is so critical. We’ll be able to advise you on the best course of action, which may include one of the following formal insolvency procedures.

Company Voluntary Arrangement (CVA)

A Company Voluntary Arrangement prevents any legal actions your creditors might be threatening, and halts all existing measures to force your company into liquidation. You remain in control of the business, and repay your creditors at an affordable rate that is negotiated by the appointed insolvency practitioner (IP).

Time to Pay arrangement

If HMRC are threatening to wind up the company, we may be able to negotiate a Time to Pay arrangement that covers your tax and National Insurance arrears. Falling behind on these liabilities is a serious concern, as HMRC are known to take legal action against non-payers quickly.

Pre pack administration

If a pre pack administration is appropriate, jobs may be saved as the underlying business is sold to a new buyer – this could be a third party buyer, or the current directors who make the purchase using their own personal monies.

Creditors’ Voluntary Liquidation (CVL)

If you fear the company could be forced into liquidation, you may want to consider a Creditors’ Voluntary Liquidation. This process places directors in a better light and helps to avert any accusations of wrongful or unlawful trading, as creditor interests are prioritised over those of the company, its directors and shareholders.

With 78 offices across the UK, you’re never far away from expert and confidential advice. We specialise in business turnaround and recovery, and offer a same-day meeting free-of-charge to discuss your needs.

Keith Tully


0800 644 6080
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners