Don't delay - prompt professional advice is vital
Is your business experiencing financial issues? Is it inherently viable but unlikely to survive in its current form?
Acting sooner, rather than later, is always the best approach - particularly as demand for professional support is likely to soar as Government restrictions on insolvency procedures continue to be phased out.
That’s the message from CBBR’s Chris Brooksbank as insolvency practitioners, nationally, prepare for “substantial and sustained demand” in 2022.
Chris said: “Businesses that are fundamentally viable have faced major challenges during the pandemic and successive lockdowns, despite Government support. Some are now burdened by levels of debt that may make survival extremely difficult and increasingly unlikely.
“Some sectors have been particularly hard hit, including the leisure and hospitality industries. We want to reassure people that there are options worth exploring and to reach out for professional help and support early on.”
Chris’s advice follows the Government decision to phase out emergency measures introduced by the Government's Corporate Insolvency and Governance Act 2020. These have been replaced by temporary protections for those still recovering financially.
The new temporary restrictions remain in force until March 31st 2022, covering England, Scotland and Wales. Read more in last month’s blog at:
Government throws new lifeline to small businesses – CB Business Recovery (cb-br.co.uk)
Chris added, “Moving ahead into 2022, firms will increasingly look to restructuring specialists for help. For example, we may be able to help with a Company Voluntary Arrangement (CVA) or administration. While neither option is a perfect solution, it can help to ensure that a fundamentally viable business will survive rather than collapse.
“We can also advise businesses with a significant debt burden, that are keen to avoid insolvency processes. Options can include a Formal Time to Pay proposal to HMRC; considering debt re-financing; or capital raising.
“In summary, we are anticipating a major spike in demand over the coming months, so please don’t hesitate to act quickly if you need help. This will help ensure that you’re at the head of the queue, rather than facing long and unavoidable delays.
“Please do get in touch, for an informal, no-obligation discussion if you'd like to explore the options available.”
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Business marks first anniversary by reporting buoyant trading position
A Yorkshire-based business recovery firm is reporting strong trading figures after celebrating its first anniversary.
CB Business Recovery was established last Autumn in the height of the pandemic to assist companies battling for survival during successive Lockdowns and beyond.
Just over a year later, they have recruited a new member of staff and are now planning for the coming year as the UK continues to adjust to new trading conditions.
Speaking after the Government introduced new, temporary protections earlier this month for those still recovering financially, Chris Brooksbank said:
“Given that in general the insolvency profession has been stagnant, CBBR has outperformed its expectations resulting in an excellent first year both financially and statistically.
“The Government used emergency legislation to assist struggling businesses and, as a result, legal proceedings saw a lull.
“There are fresh concerns that we may see an anticipated spike over the next two years, as the restrictions, and assistance, lift.
“Most sectors have been impacted but hospitality and leisure have been among those hardest hit. We will be working closely with all interested parties to ensure that we are able to give the very best professional advice."
Learn more by reading CB Business Recovery’s latest blog:
http://www.cb-br.co.uk/government-throws-new-lifeline-to-small-businesses/
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Note to editors: Chris Brooksbank is a Licensed Insolvency Practitioner, specialising in all aspects of corporate, personal insolvency and business recovery in a career spanning 30 years.