As the full effects of the Coronavirus pandemic began to be felt in March 2020, many anticipated a significant rise in formal insolvency appointments as companies grappled with the difficulties of unprecedently severe business disruption, as revenues plunged and whole swathes of businesses were forced to close for extended periods. The insolvency and restructuring industry braced itself for an increase in
UK businesses have been given unprecedented protection from enforcement action by creditors since the start of the pandemic in March 2020, but from the beginning of October those vital ring fences have mainly been dismantled. It is now open season for frustrated unpaid creditors, wielding winding up petitions in pursuit of their money. New legislation has created a partial relaxation
What are zombie companies? Just like the unfortunate creatures often seen lurching about menacingly in horror films, zombie companies are little more than a collective drain on the economy. They are unproductive corporate entities, which survive because of ultra-low interest rates and the forbearance of creditors. Zombie companies stop the clearing out of business dead wood, they hold back healthier
Struggling companies, barely able to meet their debts and surviving only with the indulgence of their lenders and other creditors have long been an unwelcome negative feature of both the UK and the global economy. They distort competition, force down prices and keep precious financial resources from being allocated to healthier and more productive enterprises. We have carried research using
Limited liability arrangements have long been thought of as a secure way for a business owner or director to clearly separate and protect their personal wealth from their business liabilities. Unfortunately, over time, these protections have slowly eroded, leaving business owners and directors in a more uncertain and, given the current times, potentially volatile position, both for their business and
There are numerous challenges SME business owners are facing in the current economic climate. The turmoil of the pandemic, coupled with the upheaval of Brexit, have left business owners needing to deal with unprecedented problems all at once. Changeable markets, supply chain issues and cash flow concerns, alongside the increased liabilities from Bounce Back Loan repayments, HMRC arrears and pressure
