First business casualties of Covid-19
25 June 2020: As businesses try to get back to the new normal, BRI Business Recovery and Insolvency are seeing the first casualties of Covid-19.
One of the first casualties was a catering company whose clients included car manufacturers, where regular lunches were delivered, weddings and private celebrations. With business clients closed in March, the company saw their trade disappear overnight and no income stream was expected for at least 6 months during their peak season. The company director knew his business was not going to survive. BRI assisted with the voluntary liquidation of the company and helped the director to inform bridal families that they had lost their deposits and needed to find a new catering company for their special days.
With large high street retailers being closed for three months, they were forced to look at cost-cutting exercises and small businesses were being relieved of their relationships and customer base. This left a small marketing business losing their biggest clients, resulting in the redundancy of 20 staff members. Team members of this business become family to the owner manager and BRI assisted in the overwhelming task of delivering the news of redundancy with empathy and compassion.
The ripple effect on small businesses will continue as enterprises try to survive the storm.
With the UK economy being predicted to see the worst contraction out of the developed countries, BRI’s team of experts are here to assist business management deliver difficult news as they become casualties of Covid-19.