Liquidation Saves The Business

The situation

A small chain of café’s was in serious difficulties seeking to compete with the likes of Starbucks. Although the business model was viable the first cafe had been opened in the wrong place and was causing a severe drain on the business. The company had consulted another firm of insolvency practitioners who had advised them to immediately place the company into administration. One of the company’s property advisors was concerned about the effect on the leases and asked Clive to look at the position. It was immediately clear that the leases were far more valuable outside of an administration and that the landlords needed to be onside.

What we did

Over a period of months we negotiated payment schemes with the landlords and other creditors which gave the company time to be able to assign its leases without breaching any covenants due to insolvency and obtain full value. As part of this a franchise arrangement was set up with a purchaser to preserve the company trading name and providing an income stream.

The result

Once all the leases had been assigned the company was placed into members voluntary liquidation with a substantial return to shareholders who also had the benefit of the franchise income. Shareholders who were facing substantial losses and calls on personal guarantees instead received a dividend on their shares.

Working with you

We will work with you to explore your situation in detail and provide clear, jargon-free, honest advice. Rest assured, anything discussed with us remains confidential.

All initial consultations are free of charge and without obligation.

When you need help

Call Ruth on 01622 764 612
Call Filippa on 020 7253 7171

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Testimonials

"Filippa's words of wisdom started me on a path of recovery and I will be forever indebted to her for her understanding and compassionate approach."

CEO from Devon

"The most important thing about Ruth's approach is she is professional, not pompous. She is sympathetic to clients who have problems, listening and finding solutions..."

Mr M. Referring Accountant

"Dear Filippa, thank you for delivering an impassioned speech on the issues that frustrate you and your fellow practitioners. We feel sure the points you raised were noted by those who mattered and we are especially grateful for your commitment."

Peter Sargent & David White R3 (Association of Business Recovery Professionals)

"Ruth and her team helped me through a difficult time in a caring and supportive way. I know I can always go to Ruth for advice and guidance which will be given impartially and fairly for all parties concerned. This is very much an open, clear and professional relationship which I appreciate."

Mr B IVA

"I would like to re-iterate my thanks to Ruth and her staff for putting my finances back on track, so efficiently and effectively. As a now retired person, I hesitate to imagine my financial outlook had you not successfully orchestrated my IVA."

Mr S

"I found Ruth and her team to be patient and approachable as they were always at the other end of the phone to answer any questions that we may have thereby providing us with comforting assurances as much as possible. They were also frank and candid in telling us where they did not have an answer."

Mr L Company Director

"The liquidator is Filippa Connor, and from discussing the issues involved, I have found her to be thoroughly professional and alert to our concerns about the behaviour of [the company in liquidation]."

Mr R Hulls, Independent Surveyors Association

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