Require Immediate Support? Free Director Helpline: 0800 644 6080

Real Business Rescue

Free Director Helpline: 0800 644 6080

Rescue or Close My Vape Shop

Business closure and rescue options for your vape shop

Vape shops have been one of the fastest-growing retail businesses over the past few years. Both chains and independent vape shops have appeared on high streets across the UK hoping to capitalise on the popularity of non-tobacco-based products. 

However, the rising number of vape shops is making the sector an increasingly challenging one to operate in. It’s now common to see two or three vape shops on the same high street, with the fierce competition forcing stores to undercut one another. Those falling profit margins and the rising costs across the wider economy are causing some shops to struggle. There’s also a significant challenge on the horizon, with the ban on the supply and sale of disposable vapes to be introduced by the end of 2025. 

If your vape shop is heading towards insolvency and you’re struggling to pay lenders, suppliers, your landlord, HMRC or other creditors, the time to act is now. Seeking professional advice early on gives you the best chance of turning your business around. Acting at the first sign of a problem can also help to protect your personal position if your vape shop is no longer viable and has to cease trading. 

Close your vape shop via Liquidation

If you are concerned that your vape shop is already insolvent, seeking the advice of Insolvency Practitioners should be a priority. They will go closely examine your finances and explore all possible avenues to save your business so you can make an informed decision on your next step. 

If your vape shop is no longer profitable, is under increasing pressure and has gone beyond the point of recovery, it could be in everyone’s best interests to close it down. You can do that by entering a formal closure process called a Creditors Voluntary Liquidation (CVL)

As it’s a formal insolvency procedure, you must appoint an Insolvency Practitioner to act as the liquidator. They will take control of the company, invite claims from your creditors and settle any legal disputes or outstanding contracts. They’ll also identify, value and sell the company’s assets and use the money they raise to repay your creditors. Any debts not covered by the sale of assets will be written off and your vape shop will be closed down. 

As long as you have acted in line with insolvency rules when running the company and have not signed a personal guarantee for company borrowing, you will not be personally liable for any of your vape shop’s debts. You may also be eligible to claim company director’s redundancy pay, which will provide a financial safety net while you consider your next move.  

Rescue and recovery options for my vape shop

Every business experiences downturns from time to time, and short-term issues such as cash flow shortfalls, increasing costs or mounting debts can usually be resolved with the right help. 

When determining the financial health of your vape shop, we’ll consider all the factors, from the viability of your business model to your profitability, cash flow position and your ability to pay your debts.  

In our experience, for every business that has to enter Liquidation, many more can be saved. The key is to contact us early so we can put an appropriate plan in place. There are various options we can explore to save your failing business, including:

  • Alternative funding

If your business model is sound but you lack sufficient working capital, we can explore alternative funding options to provide a cash flow injection. That doesn’t simply mean approaching the banks. Our in-house finance experts will consider all funding streams that are affordable and structured in an appropriate way for retail businesses.

  • Informal creditor agreements

If you have debts you cannot pay, we can help you negotiate with your creditors to repay what you owe over a longer period. That can free up cash flow and reduce the pressure you’re facing. Options include a Time to Pay arrangement with HMRC or informal agreements with your bank or trade creditors. 

  • Company Voluntary Arrangement (CVA)

If you’re being chased by multiple creditors or threatened with legal action, a Company Voluntary Arrangement can help to ease the pressure. As it’s a formal insolvency procedure, you will need an Insolvency Practitioner to help you draw up a repayment proposal to send to your creditors. 

If your creditors accept the proposal, the CVA becomes legally binding and all legal action and creditor pressure will cease. You then make a single monthly payment towards your debts, typically over three to five years, while you continue to trade. 

  • Company Administration

If your vape shop is insolvent and you are under intense pressure from your creditors, entering into Administration could be your best option. It will give you some breathing space while Insolvency Practitioners explore whether they can restructure the business and return it to profitability. Time is of the essence as if you do not move quickly, your creditors could force your vape shop into Compulsory Liquidation.

Get free, no-obligation advice

If your vape shop has squeezed cash flow or you’re worried it could be insolvent, you don’t need to face it alone. At Real Business Rescue, we have helped over 25,000 company directors just like you and can provide immediate advice on your business rescue and closure options. Contact our team for a same-day consultation or arrange a meeting at one of our 100+ offices throughout the UK.

10,000+ Tests Completed

Free 60 Second Test

For Ltd Company Directors

Get An Instant Understanding Of Your:

  • Debt and Asset Position
  • Director and Liability Review
  • Next Steps

Plus much more ...

Real Business Rescue Recommended
  • UK's leading business funders
  • Free Brokerage Service
  • Full Market Access
  • Over 30 years' experience
  • Strong relationships with HMRC
  • Support from start to finish
  • 10,000 potential buyers
  • 12,000+ Businesses Sold
  • 60+ Years Experience
Next Steps

We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.