Securing A Dignified End For A Century Old Spectacle Business
A North-West-based spectacle shop reached the milestone of 100 years but the competition of national chains coincided with financial difficulties, forcing the tough decision to close its doors.Â
Our Corporate Recovery team stepped in and understanding the emotional complexities of the business, the team reviewed the business with sensitivity and expertise. After a thorough review of their financial situation, it became clear that continuing operations would not be a viable option. However, the Corporate Recovery team wanted to ensure a dignified closure which ensured the employees were looked after and unsecured creditors received a fair dividend.Â
Solution
Given the circumstances, the most suitable outcome was a Creditors’ Voluntary Liquidation (CVL). A CVL is a formal insolvency procedure that empowers company directors to initiate the winding-down process voluntarily. This strategic move allows a distressed company to liquidate its assets, settle its debts in an orderly manner and bring closure to its operations under the guidance of a licensed Insolvency Practitioner.Â
Whilst a difficult chapter for the business owners, the process was handled with expertise and care to ensure the best outcome for all.
Outcome
The company’s long standing staff were able to claim their entitlement from the Redundancy Payments Office who in turn submitted their claims to the Joint Liquidators. The recovery of the company’s debtors proved to be successful with around a 95% recovery rate.Â
Also, as part of their investigations, the Joint Liquidators identified a historic over-payment of rates which enhanced realisations considerably. As a result, preferential claims for wages and holiday pay were unsecured creditors above initial expectations.
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