Credit, Collections & Insolvency News
The Government has announced that consumers who pay for goods in advance will now be protected if retailers go insolvent under new proposals. Under existing rules, if a company becomes insolvent, goods paid for in advance that are still in its possession may be considered as assets belonging to the business. These goods can be…
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Business turnaround specialist Tim Sloggett has joined financial and professional services firm Smith & Williamson LLP as a partner in its Bristol-based restructuring and recovery services (RRS) team. Sloggett joins from big four firm KPMG, where he worked with clients to deliver turnarounds, refinancing, accelerated business sales and formal restructuring processes. Tim has experience working…
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Latest research by Red Flag Alert for Quarter 2 (Q2) 2020 has recorded seven consecutive quarters of increased financial impairment resulting in a record 527,000 businesses in significant financial distress at the end of June 2020 – an increase of 33,000 since the beginning of the year. The research also finds that this represents a…
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R3, the insolvency and restructuring trade body, has hit out at changes to HMRC’s creditor status, which were confirmed after the Finance Bill received Royal Assent earlier this week. Under the legislation, HMRC will become a preferential creditor in insolvencies from 1 December, which means it will be paid in full before a number of…
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Audit, tax and consulting firm RSM has called on Government to urgently consider extending the temporary Covid-19 regulatory relief – the Corporate Insolvency and Governance Act, to three months beyond the date on which it is currently set to end. The firm says an extension will allow consumer-facing businesses more time to bolster their debt…
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Almost one third (30%) of European businesses have been forced to cut staff or wages to survive during the pandemic, with business finances set to be further stretched when government support winds down, according to a new survey from accountancy and business advisory firm BDO. In total, two thirds (65%) of European businesses polled by…
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A Recruitment director has been banned from managing companies for six years after paying himself a £150,000 bonus just before his company entered into liquidation. The investigation found that on 15th July 2020, Roy Davies from Rochdale, Lancashire, is banned for six years from acting as a director or directly or indirectly becoming involved, without…
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It is feared that up to 780,000 firms employing three million could go bust in the next year if they cannot defer repayments on government-backed loans. The figures highlight the risks if urgent action to tackle the projected £35bn of unsustainable debt from Covid-19 loans is not taken according to a new report by The…
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The overall number of company insolvencies in England and Wales decreased by 50% in June 2020, when compared to the same month last year. This was primarily driven by a decrease in the numbers of CVLs and compulsory liquidations which fell by 45% and 78% respectively. Additionally, there was a 60% decrease in the numbers…
Read moreThe latest figures from the Insolvency Service have shown that business insolvencies decreased in Scotland in June 2020 Company insolvencies decreased by one-third when compared with the same month last year (June 2019. Figures from the Accountant in Bankruptcy (AIB), Scotland’s Insolvency Service, administers company liquidations and receiverships in Scotland show there was 46 company…
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The latest figures from the Insolvency Service have shown that personal insolvencies increased in Northern Ireland during June 2020. The figures show that there were 272 individual insolvencies in Northern Ireland, up 42% from June 2019; this consisted of 242 IVAs, 24 DROs and six bankruptcies. The increase in individual insolvencies was driven by delayed…
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Leonard Curtis has made a senior hire to its Manchester team with the appointment of Hilary Pascoe as Director. Pascoe joins the Business Rescue and Recovery division and is based at Riverside House, in the city – one of the company’s 19-strong office network that spans the UK and Channel Islands. Her arrival at the…
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Members of the insolvency and restructuring professional trade body R3 expect corporate insolvency numbers to increase over the next year. More than half (56.1%) of the respondents to R3’s member survey who work in corporate insolvency said they expected corporate insolvency numbers to be significantly higher than in 2019, while 37.6% think they will be…
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