It can be extremely difficult for any type of business to cope with on-going debt issues and the possibility of bankruptcy, but one club in South Tyneside has proved that where there is a will, there is a way.
The former Ellison Social Club in Jarrow has reopened its doors after being forced to shut down due to financial troubles.
The debt-ridden company recently went into liquidation but is hoping to move onwards and upwards under the newly renamed Jarrow Buffs Club.
Gary Duff, the Chairman, said that dwindling membership numbers, cheap supermarket booze and the smoking ban has had a massive impact on the North East’s club land.
However, despite being closed for seven weeks the club is now back in business with fewer staff employed, and the business is hoping for a brighter future. The workforce has been reduced to a bar manager, two bar staff and a cleaner; and there are ambitious plans to spend £300,000 creating a state-of-the-art fitness facility on the club’s first floor, with anticipation that it will be ready to open by August.
Brian Young, the Club’s Secretary, said: “Basically, we were forced into liquidation and had to close because of big debts.”
He added: “We’re glad the club has reopened and we would ask the membership to support us.”
The club is not the only business in the North-East region to be getting a lucky break. The Port of Tyne has announced record financial results for the third consecutive year. The firm has revealed a 5% rise year-on-year to boost turnover to £63 million. It doubled its profits to £9 million in 2011, and 2012 saw pre-tax profits rise to £12 million.
Meanwhile, Tyneside food firm Northumbrian Fine Foods is creating 20 new jobs after securing a co-packaging partnership with leading UK brand, Fox’s Biscuits.
Here at Real Business Recovery, we specialise in providing businesses with active support to help avoid forced insolvency procedures. Our team has many years of experience in giving sound, structured advice to companies on the options available to tackle debt problems.
Get in touch with us today via our contact page for expert business recovery advice.