Overview
This plumbing company had held its own for 11 years, but the directors had, over time, found themselves a little out of depth; they were tired and overworked, with bad debt and arrears causing stress.
We met with the two Directors and helped simplify their seemingly complicated situation, breaking down their options and helping them make the right decision for their health and happiness, and that of their staff.
The decision was made to close the business and the company was into a liquidation within four days.
About the company
The vision of two directors, this plumbing company had been incorporated for 11 years. As the business grew, so did their staff force and for the last 5 years of trade, they had a team of 4 employees delivering their services.
The challenge
When we met the directors of this company, it was clear they had taken a lot on their shoulders. As a result, communication and strategic planning and fallen by the wayside.
Bad debt had built over a number of years to the total sum of £56,000; arrears with trade suppliers, missed HMRC payments that had become impossible to keep up with, and a deep overdraft held in the names of the Directors were all an imminent threat to both their business and personal financial situation.
With staff and personal financial loss at stake, we had met these Directors at a pivotal point.
“We talked through their options with them and came to the conclusion that for the sake of their health and happiness, the company needed to close.”
– Ben, Case Manager
How we helped
With our help, the Directors agreed that the best move was to go into liquidation.
With a plan in place, we lifted the weight from their shoulders and helped the Directors close the business efficiently and at no personal cost to themselves; they and their staff were entitled to redundancy payments and all creditor pressures were lifted.
“Both Directors had been on the payroll for 6 years – we found that they were entitled to redundancy payments too.”
– Ben, Case Manager
The result
Just four days after visiting the Directors, the company was put into liquidation. Having learned from their past mistakes, the Directors are now running a similar and successful business.
“After liquidation of the company, there was enough redundancy left over to fund their new venture.”
– Ben, Case Manager
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