Updated: 2nd March 2020
We are a small independent tile and bathroom company. We have been trading for 9 years and have fallen on hard times the past year and a half. I have borrowed money through a business loan, a personal loan, credit cards etc. Before last year we turned over £600,000 but last year our bathroom sales were quite low. Currently I am about £80,000 in the red. I would be pleased if someone could give me some advise.
As a company director when it is apparent (or should be apparent to a reasonably competent company director) that a company cannot avoid insolvent liquidation they have an obligation to ensure the interests of creditors take priority over all others. A failure to do so can result in the director having to contribute to the assets of the company personally. It does sound as if the problems faced by your company are terminal although this initial view is based on very limited information. Accordingly creditors voluntary liquidation would appear to be the most appropriate option. I would like to carry out a financial review before this advice is confirmed.
13th May 2021
The government and HMRC have issued a warning to businesses to be on the lookout for operators within their supply chains who may be committing fraud via the use of mini umbrella companies.Read More
12th May 2021
The British Retailer Consortium (BRC) is arguing for the creation of a new arbitration process to help find a solution to the issue of billions of pounds being owed.Read More