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
Showing posts with label voluntary liquidation. Show all posts
Showing posts with label voluntary liquidation. Show all posts
Friday, 10 August 2012
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.
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.
Monday, 6 August 2012
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.
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.
Monday, 9 July 2012
Comedian Frankie Boyle Liquidates his firm via an MVL
Comedian Frankie Boyle has recently been in the spotlight for putting his firm Transkor Productions Limited into voluntary liquidation.
The TV entertainer has been attracting attention as he has recently benefited from making use of the entrepreneurial tax relief scheme through the implementation of a members' voluntary liquidation.
Mr Boyle's company had a realisable asset value of around £3,083,884 before the liquidation took place. The liabilities were roughly £873,388, most of which was owed to HMRC. The estimated surplus value left-over after the liquidation was paid for and HMRC debts were settled for Corporation Tax & Vat was around £2,201,906.
Instead of extracting the remaining cash as income or dividends, Mr Boyle used the tax relief scheme through the use of a members' voluntary liquidation and only paid around 10% tax in comparison with 50%.
This is a perfect example of how directors' can utilise a members' voluntary liquidation to extract cash and assets in a tax efficient way.
The TV entertainer has been attracting attention as he has recently benefited from making use of the entrepreneurial tax relief scheme through the implementation of a members' voluntary liquidation.
Mr Boyle's company had a realisable asset value of around £3,083,884 before the liquidation took place. The liabilities were roughly £873,388, most of which was owed to HMRC. The estimated surplus value left-over after the liquidation was paid for and HMRC debts were settled for Corporation Tax & Vat was around £2,201,906.
Instead of extracting the remaining cash as income or dividends, Mr Boyle used the tax relief scheme through the use of a members' voluntary liquidation and only paid around 10% tax in comparison with 50%.
This is a perfect example of how directors' can utilise a members' voluntary liquidation to extract cash and assets in a tax efficient way.
Wednesday, 13 June 2012
Looks like liquidation after-all for Rangers...
After an attempt to process a company voluntary arrangement (CVA) Rangers' proposal has been rejected by HMRC forcing them to go ahead with a voluntary liquidation.
This comes as quite a shock to the club as they were expecting to be able to use a company voluntary arrangement to help them trade on.
The assets of the club may be purchased by Charles Green's consortium in the hope of setting up a newco so the club can start afresh.
Although a pre-pack liquidation and a newco is seriously being considered, it means that the club will not be able to play in Europe for three years and this could mean that they will lose some key players, further damaging the club's position, not only commercially, but also through potentially losing fans.
HMRC were owed more than £21m from Rangers and they were the creditor that pushed the club into administration back in February 2012.
It is said that a spokesperson mentioned that a company voluntary arrangement may have been more constricting than they would have liked and the pre-pack liquidation will allow them to sell the remaining assets of the club to the potential newco, helping them to get a fresh start.
This comes as quite a shock to the club as they were expecting to be able to use a company voluntary arrangement to help them trade on.
The assets of the club may be purchased by Charles Green's consortium in the hope of setting up a newco so the club can start afresh.
Although a pre-pack liquidation and a newco is seriously being considered, it means that the club will not be able to play in Europe for three years and this could mean that they will lose some key players, further damaging the club's position, not only commercially, but also through potentially losing fans.
HMRC were owed more than £21m from Rangers and they were the creditor that pushed the club into administration back in February 2012.
It is said that a spokesperson mentioned that a company voluntary arrangement may have been more constricting than they would have liked and the pre-pack liquidation will allow them to sell the remaining assets of the club to the potential newco, helping them to get a fresh start.
Tuesday, 12 June 2012
Guitar manufacturer goes into liquidation
The guitar maker Avalon Guitars is entering into voluntary liquidation. The firm that is based in Newtownards in Co Down has made guitars for hundreds of performers such as Van Morrison, Eric Clapton, The Corrs, David Gray, and Katie Melua for years.
The liquidation is being dealt with by FPM.
The meeting of creditors will took place around the end of May. The purpose of the meeting is to place the limited company into liquidation.
The factory where the guitars were made used to be visited by some of the big name celebs whilst the production was in motion.
Tuesday, 17 April 2012
Food Companies Struggling:
Premier Foods is one of the lowest-rated financially healthy retail companies in the UK, according to newly compiled research from Company Watch.
The owner of the Hovis and Mr Kipling brands came in with a H-Score of 14 out of 100, which is judged on aspects such as a business’ balance sheets and the prevalence of intangible assets. Premier Foods has also been in Company Watch’s Warning Area consistently for the past five years, with a health rating score of 25 or below.
The analysis is based on each company’s last five years’ published accounts, as processed through the Company Watch H-Score risk assessment model.
The average H-Score across the whole retail manufacturers sample was 52 out of a maximum 100.
Nick Hood, head of external affairs at Company Watch, said: “Our survey highlights the problems facing retail suppliers. They, like the retailers themselves, are suffering a knock-on effect from a fall in consumer confidence and reduced disposable incomes of shoppers. At a time when like-for-like sales are falling and consumers are demanding evermore value for money through deep discounts, retailers are inevitably making most suppliers share the pain.
“The accounts we examined are mainly for periods ending during the latter part of 2010 and early 2011, which means that these figures do not yet reflect fully the upward pressure on manufacturers’ costs from rising energy and commodity prices. Once these feed through, we can expect the financial health of the sector to deteriorate further, with more manufacturing companies falling into our Warning Area and becoming vulnerable to insolvency or restructuring.”
In total, 173 companies (25%) out of 681 of the UK’s largest food, non-alcoholic beverage and clothing manufacturers, were currently in its Warning Area, with health ratings of 25 or below out of 100.
Dairy Crest, producer of Cathedral City cheese, Utterly Butterly and Clover spreads, fell into the Warning Area category after its March 2011 results with an H-Score of 20 and was pushed deeper when its interim figures to September 2011 produced a lower H–Score of 16.
Drinks manufacturer Britvic, owner of the Robinsons, Tango and 7Up brands, also appeared in the Warning Area with a current H-Score of just 17 out of 100 – a financial rating partially driven by the high level of intangible assets, which are almost 15 times the company’s net worth.
Statistics on all UK companies for the past 14 years show that one in four companies in this ‘red danger zone’ have either gone on to file for insolvency or have undergone major financial restructuring.
The owner of the Hovis and Mr Kipling brands came in with a H-Score of 14 out of 100, which is judged on aspects such as a business’ balance sheets and the prevalence of intangible assets. Premier Foods has also been in Company Watch’s Warning Area consistently for the past five years, with a health rating score of 25 or below.
The analysis is based on each company’s last five years’ published accounts, as processed through the Company Watch H-Score risk assessment model.
The average H-Score across the whole retail manufacturers sample was 52 out of a maximum 100.
Nick Hood, head of external affairs at Company Watch, said: “Our survey highlights the problems facing retail suppliers. They, like the retailers themselves, are suffering a knock-on effect from a fall in consumer confidence and reduced disposable incomes of shoppers. At a time when like-for-like sales are falling and consumers are demanding evermore value for money through deep discounts, retailers are inevitably making most suppliers share the pain.
“The accounts we examined are mainly for periods ending during the latter part of 2010 and early 2011, which means that these figures do not yet reflect fully the upward pressure on manufacturers’ costs from rising energy and commodity prices. Once these feed through, we can expect the financial health of the sector to deteriorate further, with more manufacturing companies falling into our Warning Area and becoming vulnerable to insolvency or restructuring.”
In total, 173 companies (25%) out of 681 of the UK’s largest food, non-alcoholic beverage and clothing manufacturers, were currently in its Warning Area, with health ratings of 25 or below out of 100.
Dairy Crest, producer of Cathedral City cheese, Utterly Butterly and Clover spreads, fell into the Warning Area category after its March 2011 results with an H-Score of 20 and was pushed deeper when its interim figures to September 2011 produced a lower H–Score of 16.
Drinks manufacturer Britvic, owner of the Robinsons, Tango and 7Up brands, also appeared in the Warning Area with a current H-Score of just 17 out of 100 – a financial rating partially driven by the high level of intangible assets, which are almost 15 times the company’s net worth.
Statistics on all UK companies for the past 14 years show that one in four companies in this ‘red danger zone’ have either gone on to file for insolvency or have undergone major financial restructuring.
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