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CASE STUDY 1
Construction company struggling with over £5 million in creditors due to the loss of a major contract.
When you’re relying on a particular contract that suddenly gets pulled from under your feet, it can have a colossal effect on your company and employees. A renowned construction company were faced with this issue after a key client chose not to renew their contract. This left 60 company workers fearing for their jobs as cuts loomed large.
As experienced insolvency practitioners, we can help you with various options, such as continuing to trade in an orderly and controlled manner or finding a buyer for the company and ensuring your workforce are paid.
Our insolvency practitioners agreed to act as administrators and we structured a plan to save the business. It’s always a key objective of ours to keep companies running if it is in the best interests; our Government wants to see businesses survive especially in this post-recession period, and the Enterprise Act actively encourages company recoveries and we specialise in this.
Real Business Recovery were able to identify a potential purchaser of the business, and by placing the company in administration we were able to secure the successful sale of the business as a going concern which saved over 60 jobs and provided a return to the creditors.
Have you thought about the rescue options open to you, rather than opting for liquidation? To find out more, please give us a call for advice on both closure and rescue options.
CASE STUDY 2
A rapidly growing IT company required urgent funding in order to meet its growing commitments.
Sometimes, a company can grow too quickly and effectively start running before they’ve mastered the art of walking, usually through being too ambitious or lack of business acumen to handle the rate of growth.
This particular company evolved rapidly and was continuing to win new clients. Whilst turnover was strong, the actual profit margin was poor and there were numerous cases of the true cost of providing the service not being met. With things being so busy, they had lost sight of what was cost-effective and it was becoming a huge issue.
Fundamentally the business was sound but they had veered off track and with 40 employees and a winding up order on the horizon, it was a worrying time. This is where we stepped in.
By securing an appropriate factoring facility in order that the company could continue to expand, we prevented winding up by Crown creditors and structured a workable CVA deal with creditors that was sustainable and ultimately saved 40 jobs.
Through this last ditch CVA agreement, the company directors were taught a valuable business lesson; turnover is vanity, profit is sanity.
If your business is facing similar problems, contact us now and we can help and arrange to step in on your behalf.
CASE STUDY 3
A large healthcare organisation had accrued a significant tax liability which it was unable to meet as it fell due.
A well-known health firm had slipped up when it came to careful tax planning, and of course, this kind of thing does not simply "go away". When it comes to tax payers’ money, the collectors are there to collect it – full stop. If you don’t pay up on time, it is highly likely they will take action.
Non payment of this tax is a failure to comply with the tax legislation and also signifies loud and clear to HMRC that the company is insolvent. So, you need to act properly and responsibly and deal with this serious threat to your company.
We were called in to offer advice to the healthcare company who had built up liabilities for Corporation Tax, VAT and PAYE. With 1,700 jobs on the line, it was a sensitive, tricky process. It seemed only a matter of time before legal action would be taken against the company and so we had to move fast.
We negotiated a deal with the taxman for realistic and sustainable repayments of tax arrears the tax arrears through a ‘time to pay scheme’. In this instance, it was the best course of action and our decision was merited when HMRC agreed to the plan, meaning we had safeguarded over 1,700 jobs!
The time to pay scheme isn’t always the answer but in this case, it was. If the difficulties are more fundamental then often a CVA can be the right way to go. There are numerous options and we are always happy to discuss these with you – get in touch today.
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