In these hard economic times business is very hard. If you are a
company director looking for a bit of advice because your Kebab shop
business is struggling, you have come to the right place. I have
created many articles which try to help a director take the right
steps in either closing or liquidating a business or pre-packing a
sale and starting again. Firstly if your Kebab shop company is
insolvent you have a duty as a director to close the company and not
incur any further debt, unless you can be pretty sure that you can put
in place a rescue plan to turn that business around. If you can€™t
them you need to liquidate the company yourself or take professional
advice on how best to close the business in an orderly fashion. By far
the most popular choice is to engage an insolvency practitioner to
call a meeting of creditors on your behalf, prepare the statement of
affairs, hold the meeting and then deal with all the procedural
aspects of liquidation necessary to make sure all creditors now what
is going on and how they can participate in any dividend. This is
called a CVL or creditors voluntary liquidation. There is a fee for
all this and generally it will be about £5000 whoever you use around
the country. There are some advertisements for liquidations at less
than this but by the time all costs are accounted for, it will still
come in at about the same sum. These costs can come out of the assets
of the Kebab shop company and indeed many businesses do have just
enough assets or cash to take this final step. For many businesses,
the central core of what the business does is still profitable and so
often directors will want to continue to trade. This is easily
possible and a sale of assets can be arranged to a new company and a
lease re-assigned by a landlord, which often leaves the new company
trading on in the same line of work from the same premises.
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