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.
28th July 2021
The number of UK companies in positions of ‘significant financial distress’ were up 24 per cent at the end of the June 2021, as compared to the same point of last year.Read More
22nd July 2021
The Confederation of British Industry (CBI) has called for an “immediate rethink on self-isolation rules” to help businesses manage their workforces as the economy reopens and recovers.Read More