Today is the day which sees many retailers pay their quarterly rent and could see the industry facing more troubles.
Last rent payment day saw Jane Norman, Habitat and TJ Hughes fall into administration and many retailers are still struggling after retail sales fell in August and September.
Figures from the CBI said that September was the worst month for retailers since May 2010, as sales had fallen by 0.2% in August and problems caused by the riots continued to dog the high street.
It is expected that banks will be more lenient on struggling retailers as the busiest shopping period of the year approaches and will be more willing to extend credit until after the festive season.
One in four retailers say that they are suffering cashflow problems, with 8% saying that they expected their business to collapse in the next year. If your business is struggling in the current economic climate, here at Real Business Recovery we could help you and your business to stay solvent despite the challenging times.
We have successfully helped a number of businesses with advice on everything from managing cashflow through confidential invoice discounting to implementing a company voluntary agreement to pay back creditors to closing a company and liquidation. We aim to provide businesses with accurate and realistic advice to make sure that you get the right solution for you, your employees and your creditors.
Retail company the Hub has gone into administration, with the loss of 57 jobs.
The chain, selling household goods at low prices, had stores in Lichfield, Stafford, Telford and Manchester. All stores have now been closed for good, after being shut down for refurbishment a few days ago. Liquidators are set to be appointed in the next few days.
The company was created by Poundland co-founder David Dodd. He said:
“Having taken independent professional advice, we have reached the difficult decision that liquidation is in the best interests of all involved.”
Many businesses are struggling in the current economic climate, but there are a number of options available to help your business stay afloat and in profit.
If you’re suffering with cashflow issues, considering business invoice factoring could help your business. This involves passing on your debtors’ book to a specialist company who will chase your debts for you. Using factoring allows you to save time and resources on chasing your debts for a small fee, and can also help maintain positive relationships with your customers so you keep your business in the black and not the red!
However, if you do what to find out how to close a limited company because that is the best option for your business, there are also resources out there to help you. Here at Real Business Recovery, we have experience of helping companies from a range of different sectors with their business recovery requirements, so visit our site or get in touch today to see how we could help you.
The money troubles for Pompey still aren’t over as the club could face a potential legal battle over a promise by the club’s owner to pay back all small creditors in full.
The club took out a Company Voluntary Agreement, also known as a CVA, back in 2010 to help pay off some of the club’s £135 million debt.
The terms of the CVA stated that the club would pay off at least 20% of their debt over 5 years, however owner Balram Chainrai said at the time that small creditors (those owed less than £2,500) and charities would be paid off in full at a cost of almost £200,000 to him.
However, chief executive David Lampitt told supporters at a fan forum that it is not the responsibility of the club to pay back all the money.
“What was a positive gesture to pay 100 per cent of what they were owed rather than 20 per cent was a positive thing. There was no deadline, but we are keen for it to happen as soon as possible”, he said.
“I have to make it clear the debt and liability does not lie with the football club. There is, I guess, a bit of legal wrangling to sort that situation out.”
Whatever area of business assistance you require, whether you’re having problems paying VAT, need advice on improving your cash flow situation or are thinking of closing down a company, contact Real Business Recovery.