Corporate Events Management and Hospitality London
This company was affected by the credit downturn, customers were spending less money on hospitality and entertainment, resulting in declining turnover over a period of 12-18 months.
The director had supported the business by using her credit cards and savings to cover the losses that were being incurred and had endeavoured to reduce the running costs of the business as much as possible.
With no further money to lend to the business and mounting pressure to repay overdue debts, she came to us for help and advice on the most suitable way of dealing with the situation. During our meeting the financial position of the company was established and the realistic future prospects of any upturn in business were discussed. Both we and the director were confident that the prospects were good and that the company would return to profitability in the short term. The director was concerned that liquidating the company and ceasing to trade would damage long established client relationships and was keen to ensure the company's creditors received as much money back as possible. As the company had no assets liquidation would mean that both she and creditors would get nothing at all.
We recommended a CVA and introduced the client to the most suitable insolvency practitioner on our panel to assist with putting a proposal together for the repayment of the company's debts.
The CVA was accepted by all creditors, its now been running successfully for 18 months and should complete in about a year.
Key Advantages:
- Survival of the company
- Client and creditor relationships were maintained
- No further redundancies were necessary
- The director continued to take a salary and was able to service the personal debt
If your business is facing similar circumstances, contact us now on 0845 468 2395 or visit our contact page.
