Overview
This glazing company had been around for 14 years but had been inherited by the director just 6 years prior to contacting us. It had been left in a state of debt by the previous owners and the current director wanted to concentrate his passions elsewhere.
He knew he wanted to close the doors on the business and he also knew he wanted to do it with the least cost involvement possible.
About the company
Incorporated for 14 years in total, the current director had spent the last 6 years trying to brush the dust off this business and bring out its full potential. The company employed just one member of staff who had accrued 20 years’ service after a transfer from another company.
The challenge
Sadly, the previous directors had taken on lease agreements the company couldn’t afford and the debt was snowballing. The debt totalled £40,000 including HMRC bills and bills from various suppliers. After having bailiff services visit his home address, the director had reached his limit. He had another business to concentrate on and his 6 years of effort hadn’t paid off for the glazing company.
Looking for the cheapest solution to his problem, the director was keen explore dissolution. However, in exploring this option for him, we highlighted some large redundancy payments the company would need to cover.
“We advised against this option… his staff member of more than 20 years was entitled to a large redundancy payment, along with his own entitlement and his wife’s who was the company secretary.”
– Ben, Case Manager
How we helped
With our advice and guidance, the director agreed that the best move was to go into liquidation. We took the reins and guided the company through the process allowing the director to shift his focus away from the stress and the worry, and back on to his other profitable business.
The result
The liquidation approach meant that no cost was incurred by the director and he and his wife received a redundancy payment as they should.
“He was able to forget about the company debts and move on to work on his more successful company”
– Ben, Case Manager
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