Trinity Mirror Hires Ex HMV Boss

Simon Fox, the ex CEO of HMV has been hired as the new boss of media group Trinity Mirror.

Trinity Mirror have confirmed the new appointment very recently after speculation on the news caused discussions over whether it was going ahead.

There has been some concerns voiced through social media forums from shareholders about the new appointment of Mr Fox, given that his two previous appointments have been over some very reputable company's that have now been left in less than optimal financial position.

The last company Mr Fox was CEO of, HMV, saw a 98% drop in share price over the period that he was employed at the company which is almost certainly why there has been so much concern from shareholders of Trinity Mirror over his new appointment there.

Insolvency is a challenging period for any sized business and making the right decisions when it counts is not an easy task for the average person. Getting the correct guidance throughout the more challenging periods is essential for the success of your plan so if your company is struggling with cash-flow problems please get in touch with us sooner rather than later to find out your options at no cost.

Call us on 08000 746 757.

JD Sports Sale Going Ahead

JD Sports has a rugby brand called Canterbury and this is the part that is to be would for around £22.7 million to the retail company Blacks Leisure Group.

The brand Canterbury was established in 1904 in the New Zealand province of Canterbury and has been making and selling rugby tops ever since. It has grown since this date to become one of the worlds largest rugby brands.

The fact that Canterbury has recently secured a long-term agreement as the official rugby football union kit partner will make the deal more attractive to purchaser Blacks Leisure Group.

To compliment our recent internal blog on our website www.companydebt.com this is an ideal situation where a business sale can be a great opportunity for both companies involved, unlike a situation that involves an insolvent company with little chance of success going forward.

Limited Company or Sole Trader?

Quite often we get calls throughout a week and a common question is "Am I protected?". What is the main difference to you as a person in business between a limited company and a being a sole trader? The simple answer is protection. When heading for insolvency a sole trader has the distinct disadvantage that their person debts and the business debts are one in the same thing. This is not always the case if you are running a limited company.

A benefit of having a limited company to a director is the protection that the limited liability status provides. If all of the company debts are unsecured and there are no personal guarantee signed on any of the agreements with creditors then you are far better protected that if you were a sole trader.

Clearly this does not mean that you can neglect your company's creditors, but what it does mean is that you can manage the situation with more personal security and less stress.

This seems to be a common misunderstandings when speaking with business people in the UK when discussing insolvency and the risks involved.

Travelodge in Trouble Once More?

Debt ridden hotel chain Travelodge is having some difficulties with its creditors as they feel that the rescue plan is not as they would like.

The British Property Federation has called for a review of the company voluntary arrangement that has been put forward by the insolvency practitioners that have been engaged by the hotel firm.

At least 109 of the total hotels within the chain have been deemed as viable.

The Travelodge has around £1 billion worth of both secured and unsecured debts, however, they saw a 20% rise in profits last year creep towards £55 million. This shows promise in these challenging times for hotel chains so there could be promise for the Travelodge.

Talks are going on at the moment between KPMG, the insolvency practitioners who have been engaged by the Travelodge and the creditors to find some sort of middle ground for the company voluntary arrangement otherwise know as a CVA.

Portsmouth Could Fall Into Troubled Waters Once Again

Portsmouth Football Club is verging on the edge of having to consider liquidation again after the sale of the firm was rejected at the last minute.

Balram Chainrai who was lined up to purchase the club pulled out at the last moment and Portsmouth's future is now uncertain once more.

This situation was not made better by the embarrassing defeat at the hands of second division Plymouth Argyle.

Will Portsmouth have to consider liquidation once again or will they pull something out of the bag at the last minute. We are all watching on tender hooks.

Lloyds Sells Private Equity Portfolio

Lloyds Banking Group has sold-off its private equity investment portfolio to Coller Capital for £1 billion.

In the lead up to December 2011 the portfolio had business debts of around £40 million so the sale will come as a pleasant surprise to many tax payers.

Coller Capital specialises in helping to provide an escape route for businesses looking for an early get-out from their equity investments.

It is said that the transaction made Lloyds around 100p in the £1.

Alternative Investment Firm to Pay Out More Than They Hoped for

An alternative investment firm, Centaur Global Limited was liquidated back in January and is now being told to repay some of its creditors after an in-depth investigation by the liquidators, Begbies Traynor.

A representative at Begbies Traynor said that they were able to maximise the potential return for the creditors due to a full investigation taking place.

Centaur owed creditors around £2m at the point of liquidation and the creditors had no expectations of getting a return, however, since the investigation the situation has moved in their favour.

Centaur was an investment firm focussing on running a number of funds worth millions surrounding online sports exchanges for the odds on sporting event outcomes.

It just goes to show that even when a limited company has been put into liquidation it doesn't mean that important areas go unnoticed. It is the Liquidators responsibility to carry out these types of investigations and make sure that all areas such as this are fully addressed before moving onto the next case.

Africa Olympic Village Closes

The Africa Olympic Village has shut down due to debts that were unable to be paid.

The village was shut down on Wednesday the 8th of August because of the mounting debts that were owed to creditors.

A representative said that the downfall was mainly due to logisitcal issues.

The site played part in hosting music and dance events and is situated in Kensington Gardens in West London.

This information comes as a shock and upset to most that were involved with the village and it seems a shame for the business to hit insolvency so soon during the Olympics.

Portsmouth to be sold?

Looks like Portsmouth football club is to be sold off after a deal has been struck by administrators to off-load all of the senior players.

The previous FA Cup winners have been insolvent for some time now and they have been considered many insolvency solutions such as a company voluntary arrangement and voluntary liquidation.

The sale of the club will take place next week, days before the new season starts.

This shows the level of business that can struggle with insolvency, it's not exclusive to small UK limited companies. Businesses of all sizes can come into difficult times. The insolvency solutions are often the same to consider and it all depends on the company's situation as to which one they choose to help them towards their goal.

www.companydebt.com

HMV announce more losses

HMV have recently announced that they have more losses totalling at around £16.2 million and have also taken out a loan to help support the business in the near future.

The retail music firm has had around a 12% drop in profits compared to last year and the loan they have recently taken out is £4.4 million to try and aid the business' future.

The struggling limited company is trying to trade through the difficult period with a venture into selling hardware products and although a spokesperson has said that sales of the hardware products are on the rise, so far the plan doesn't appear to be doing enough.

I for one would like to see HMV stay on the high street as I believe it is a valuable asset to the UK's retail sector and provides a good selection of attractive products.

Retail has been hit hard as we all know and there are many businesses on the high street facing similar situations but with the added challenge of not being able to borrow money for whatever reason. When a limited company is struggling and is approaching insolvency there are a few solutions that can be selected to help the business to either trade on or close down with the potential for the same director to start afresh with a new company.

Simply closing down with debts to consider may be a situation for voluntary liquidation such as a creditors' voluntary liquidation. Alternatively, if you want to keep on trading with the same legal entity you may want to consider a company voluntary arrangement. More about these solutions can be found at www.companydebt.com.

Year on Year Fall in Compulsory Liquidations

Statistics show that there has been an 18.7% year on year fall for compulsory liquidations from the second quarter of 2012 compared with the same period last year.

The figures are supported with the coming of the Olympics that has had a positive impact on many UK businesses recently.

Against these figures there was also a rise in company voluntary arrangements (CVA's) within the same period which is a positive sign for UK limited companies as this is a solution to help businesses trade on.

There was a slight increase in creditors' voluntary liquidations within this period of around 0.4% against the previous year.

A representative from R3 the Association of Business Recovery Professionals has said that although the retail sector appears to be having its own challenges at the moment, corporate insolvency on the whole is actually down so its a positive outlook for the time-being.

Could there be trouble for Thomas Cook?

The travel company, Thomas Cook have been struggling for some time. The tour operator firm has just confirmed greater losses in Q2 than they had hoped and is a stark comparison against the profits in 2011.

The total losses for Q2 are said to be £26.5 million. If we compare this against the profits of the same period in 2011 which was around £20.1 million the travel company clearly has cause for concern.

Comparing the same period within a 2 year time frame displays a volatile trend so anything could happen.

They were hoping for sales form their Olympics packages to support them throughout this period, however, sales have been disappointing low.

Many companies are having insolvency difficulties and cash-flow problems at the moment in the UK and deciding which solution to take such as a company voluntary arrangement or biting the bullet and going through a voluntary liquidation can be hard. What sort of solution will Thomas Cook reach for?

A common word mentioned several times when representatives from Thomas Cook have been questioned is 'challenging'.

Let's hope that the travel firm is up to the challenge and comes out stronger on the other side.