A Stitch in Time Saves Nine
9 October 2019: Our Spalding office were recently approached with respect to assisting a company who make and fit curtains for both private and larger commercial properties.
The company contained dedicated staff with specific skill sets tailored to the particular line of trade, unfortunately however, orders were drying up and had become insufficient to sustain the business. As debts were increasing, following a free consultation with BRI, the director saw that the only solution available to the company was for a winding-up of the business to occur.
Before reaching this conclusion, during a period of consultation with BRI many options were discussed and later explored, including the possibility of further lending to inject new capital (the director was pointed towards an independent finance specialist in this regard but ultimately rejected this option as no lending could be introduced which did not require personal guarantees). A possible buy out from a staff member was also discussed along with several cost cutting measures which may have made the business viable in the long term.
Ultimately, once explored none of the alternative options could be relied upon to ensure that the business would be on a sure footing from which to trade successfully in the future. Nevertheless, the director, who had committed much time, money and effort into the company was grateful for the opportunity to explore all possible options before accepting the outcome was to be a liquidation.
By taking the correct action now, which despite the loss of substantial funding to the business, was an outcome which would not financially endanger the director, a possible far worse outcome in the future was avoided, thus a timely stich being made.
BRI has now assisted with placing the company into liquidation following an orderly winding down of its trade. We hope the above demonstrates the level of client service we provide and that, as ever, the aim here at BRI was to achieve the right outcome regardless of the potential fee outcome for ourselves.