Administrators appointed at Barrow & District Credit Union Limited

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Barrow & District Credit Union Limited.

News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Aegis update

Aegis update

Over the last six years Stephen Goderski has been appointed as Administrator and / or Liquidator of a number of […]

Read more

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more

Administrators appointed at Pioneer Mutual Credit Union Limited

Dina Devalia and James Sleight of PKF GM have been appointed as Joint Administrators of Pioneer Mutual Credit Union Limited in Barrhead, Glasgow.

Contact details

You can contact us by phone or email

News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Aegis update

Aegis update

Over the last six years Stephen Goderski has been appointed as Administrator and / or Liquidator of a number of […]

Read more

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more

Support for SIBA members


A dedicated resource for SIBA members whose finances are under pressure in lockdown.

At PKF GM we help business owners and management teams navigate periods of financial stress. We’re also a long-standing supplier associate member of SIBA (the Society of Independent Brewers).

In response to the third Government lockdown we have created this dedicated web resource for SIBA members who, like many in the hospitality sector, are feeling the financial strain.

On this page you’ll find advice and links to further information on:

We know the huge stress which cash flow problems can cause. The sooner you act to address them, the better the chance your business can be saved. Don’t leave it too late.

Trusted, experienced advisors

Contact our experts to find out how we can support your business

Warning Signs

If any of the below apply to your business you should speak to a restructuring professional for advice on how you can prevent matters from escalating.

  1. Can’t pay wages / salaries. This is the acid test.
  2. Can’t afford to make redundancies.
  3. At your overdraft limit and your bank refuses to extend it.
  4. Key suppliers have placed you on “stop” until you reduce your debt with them.
  5. Receiving threatening letters from debt collectors / solicitors on behalf of creditors.
  6. Receiving County Court summons and judgements.
  7. Being threatened with statutory demands and / or a winding-up petition.
  8. Unable to pay the rent and Landlord threatening enforcement proceedings.
  9. HMRC pursuing outstanding taxes.

Fortunately, a huge amount of help and support is available.

Lonely at the Top

Life as an entrepreneur or company director is lonely at the best of times, and breweries have been hit harder than most by COVID. Managing mental wellbeing and seeking help and advice – personally and professionally – is really important.

Managing Cash Flow Pressure

1. Access Government support

As a first step, we recommend you make maximum use of all the financial support on offer from government and local authorities. Details of these schemes are on SIBA’s website.

Most notably they include the Coronavirus Job Retention Scheme (furlough) (“CJRS”), the improved Self-Employment Income Support Scheme (“SEISS”) and local support grants. The application window for the Bounce Back Loan and Coronavirus Business Interruption Loan (CBILS) has also been extended, so these will remain available until at least the end of March.

SIBA and others continue to press for more government support, so review this resource regularly to keep up-to-date with national and local developments.

2. Talk to your creditors

If invoices or other commitments are likely to become overdue / unpaid for an extended period of time, we strongly encourage making direct contact with suppliers, landlords and HMRC asking for patience and support. Our experience is that this is almost always a better approach than avoiding contact with creditors, however attractive this may be in the short term. Here is more advice on negotiations with creditors.

If a supplier is refusing to supply further goods or services without a contribution to reduce your account, alternative suppliers may be willing to give additional credit, but be very careful of taking on new credit without a realistic prospect of being able to repay it.

We also appreciate that some suppliers will not be able to extend such forbearance forever, but the government has introduced temporary legislation restricting the use of statutory demands and winding up petitions as a debt enforcement measure. Landlords have restricted powers to enforce payment of outstanding rent and HMRC are allowing payment of various taxes to be deferred for considerable periods.  Indeed, Time to Pay arrangements in respect of tax arrears appear to be being actively encouraged by HMRC.

These factors should be introduced into your discussions / negotiations with suppliers, creditors, landlords and HM Revenue & Customs.

3. Consider raising additional finance

If you feel you have exhausted these schemes, your Bank may be able to offer additional funding.  Our experience is that Banks have sought to be supportive of their customers directly impacted by Coronavirus.

If your Bank can’t help, consider alternative / additional external funding, especially if you can offer additional security. There are many alternative lenders in the market place offering a wide range of funding packages, ranging from loans, to lease and hire purchase agreements to single sales invoice financing.  Many can act very quickly and this may be a viable solution. But be cautious of some of the terms offered. Higher interest rates than your existing borrowing are almost inevitable. The lender may also seek additional personal security, such as a second charge on your personal house – a major step which may have life changing consequences.

Find out more about raising additional finance.

4. Get professional advice

You may already be pursuing some or all the above solutions.  It goes without saying that the earlier these issues are addressed, the more time you have to explore them and the greater the prospect of success.  Timing can be critical.  Don’t put it off.

Our experience of working closely with directors and business owners under these circumstances means that we know just how lonely and stressful these situations can be. The competing pressures of managing a business under severe cash constraints are significant and they continue to increase during the pandemic.  We strongly recommend seeking a trusted adviser / confidante who can act as a sounding board and / or provide reassurance on strategies being pursued.

Restructuring and Insolvency Options

If you have exhausted all your options and think that there is no realistic progress of continued trading without some form of protection for your business, then there are restructuring and insolvency options which can help you save some or all of the business and be preferable to liquidation / bankruptcy. These include:

  1. Selling the company (it may be for a nominal value) or failing that all or parts of the business.
  2. Seeking potential investors who may wish to invest in the company, typically in return for a future stake in the business.
  3. The company / business being saved by a formal Voluntary Arrangement with its creditors.
  4. The Statutory Moratorium recently introduced as part of new legislation. This new process is aimed at helping businesses survive, leaving the day to day control of the company in the hands of the directors whilst they implement a survival plan.

The above options should be assessed with the assistance of professional advice.  Certainly options 3 and 4 should involve a Licensed Insolvency practitioner.  This could also have the added advantage of ensuring that the directors meet their obligations under the Insolvency Act whilst the options are explored.

If all these options fail and Liquidation or Bankruptcy is inevitable, seek professional advice to avoid any actions now inadvertently having an adverse impact on your ability to earn a living in the future, whether in the brewing industry or another sector.

Insolvency procedures aren't all terminal

Most insolvency procedures are designed to protect and rescue businesses rather than close them. Follow the link below to find out more about what they mean and how they work.

Here to Help

We offer a free and confidential service to SIBA members if you would like any further information in connection with the above or to discuss any of the points raised.

Please feel free to contact us to see how we can help.

News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Aegis update

Aegis update

Over the last six years Stephen Goderski has been appointed as Administrator and / or Liquidator of a number of […]

Read more

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more

The consequences of a third national lockdown


The latest lockdown may bring the reset button into play

Stephen Goderski

Director - London

t: 0207 516 2224

e: stephen.goderski@pkfgm.co.uk 

James Sleight

Director - Leeds

t: 0113 426 7404

e: james.sleight@pkfgm.co.uk

News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Aegis update

Aegis update

Over the last six years Stephen Goderski has been appointed as Administrator and / or Liquidator of a number of […]

Read more

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more

A new lease of life for a brewery


How a new finance facility resolved a brewery’s cash flow problems and provided funding for growth.

Helping clients with their funding arrangements

Oliver is an expert in business finance. He has helped dozens of clients improve their cash flow by putting the right finance package in place.

Oliver Collinge

Director - Leeds

t: 0113 426 7405

e: oliver.collinge@pkfgm.co.uk

News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Aegis update

Aegis update

Over the last six years Stephen Goderski has been appointed as Administrator and / or Liquidator of a number of […]

Read more

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more

Rescue of a food manufacturer


How we used administration to rescue a food manufacturing business that had fallen into financial difficulties.

The client

Our client produced high quality, rare breed meat for the UK hospitality sector, including a number of Michelin starred restaurants.

Although a well-known and highly respected name in its market, the business had experienced a number of operational and financial difficulties over several years and had accrued creditor arrears which were no longer sustainable.

The problem

Due to several years of gradually worsening financial performance, caused both by changes in its market and problems with its operating model, the company had built up large creditor arrears. The owners of the business were not willing to introduce further funds and management recognised that the company was no longer sustainable without additional capital being introduced and action being taken to address the creditor position.

The company was beginning to experience significant cash flow pressure and several creditors were threatening imminent legal action. The management team approached us for advice on whether the business could be saved.

Dealing with cash flow pressure

If your business is experiencing cash flow pressure, get in touch with us. There are a wide range of options for dealing with cash flow issues.

The sooner you take advice the more options you have and the better the chance of success.

The plan

Because the business needed the introduction of significant capital, as well as a mechanism to deal with its large creditor arrears, a sale of the business via a pre-pack Administration, appeared to be the best option; the other main rescue procedure – a CVA – would only deal with the creditor position and would not solve the need for a capital injection.

A pre-pack involves finding a buyer and agreeing the terms of a sale before the company enters administration. Once a deal has been agreed the company is placed into administration and the sale takes place immediately: the business and assets (including employees) move across to a new limited company owned by the purchaser, whilst the creditors remain with the original company in administration.

Working with management we prepared a long-list of potential purchasers – this was based on management’s market knowledge, our own research and our extensive professional contacts, including a variety of investors who buy and fund financially distressed businesses. A one-page confidential flyer was issued to our target mailing list of several hundred parties. This initial mailing generated significant interest and a full sales pack was provided to all parties who who were willing to sign a confidentiality agreement. A number of parties then visited the business and met with management to assess whether to make an offer.

The result

Within three weeks of our initial meeting with management we had received three credible offers to purchase the business via Administration. Within a further week we had agreed terms with a trade purchaser, the company was placed into administration and the sale of the business completed.

The purchaser was a larger food manufacturing business, which not only had the resources to fund the business but brought access to new routes to market, which were expected to grow sales, and synergies to reduce costs.

The company’s entire workforce (some 25 employees) were transferred to the purchaser, providing full continuity of employment (including their accrued length of service and other entitlements). In addition the proceeds from the sale of the business, together with the collection of the company’s outstanding sales ledger, were sufficient to enable us to make a distribution to creditors.

News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Aegis update

Aegis update

Over the last six years Stephen Goderski has been appointed as Administrator and / or Liquidator of a number of […]

Read more

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more

What insolvency option is right for my company?

The range of insolvency options can be overwhelming. We’ll help you understand the options and make the right choice for your business.

Peter Hart

Director - London

t: 0207 5162221

e: peter.hart@pkfgm.co.uk

News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Aegis update

Aegis update

Over the last six years Stephen Goderski has been appointed as Administrator and / or Liquidator of a number of […]

Read more

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more

Rebuilding with a CVA

How a CVA helped a groundworks business manage the loss of a major contract and survive to tell the tale.

The client

Our client was a £6m turnover groundworks contractor.

A second generation family business, its customer base was mainly made up of local authorities; one large local authority in particular accounted for over a third of its income.

The company had been historically profitable, but shrinking local authority budgets had reduced margins, so that recent trading had been tougher and cash flow was more stretched than it had been historically.

The problem

A change of key personnel in the purchasing department of the company’s main customer meant that in only a few months the amount of work being obtained form that customer shrunk to almost nothing. This quickly affected cash flow and the company’s management became concerned that their cash resources would be exhausted long before they were able to replace the lost income form other sources – a process they expected to take up to two years.

The client approached us for advice on how they could manage their cash flow whilst they rebuilt their sales.

Is a CVA right for your business?

If you think your business could be viable given some breathing space from creditors a CVA is an option you should consider. Contact us for a no-obligation discussion in confidence about your situation and we’ll talk you through your options.

The plan

The business had been profitable for many years and, although it had become too reliant on one customer, there appeared to be a reasonable prospect that the company could recover to a position where it would be cash generative given time. But large creditor arrears were building up along with threats of legal action by creditors.

We worked with the company’s accountants to prepare trading forecasts which suggested that with some cost savings, the company should return to profit and begin to generate surplus cash in 18 to 24 months. This surplus cash would be sufficient to repay creditors 60p in the £ over a five year period. We also calculated that creditors would only receive about 10 to 15p in the £ if the company entered liquidation (the alternative if a CVA wasn’t approved).

Based on these figures we issued a proposal to creditors offering repayment of 60p in the £ over a five year period and showing the likely return in a liquidation scenario.

The result

A CVA needs to be approved by 75% (in value) of creditors. Following some negotiations with creditors, particularly HMRC, we were able to obtain almost unanimous support for the proposals and the CVA was approved.

With the approval of the CVA, the company’s cash flow problems were immediately settled. Management could re-focus on the business – growing the order book and making cost savings.

The Company returned to profit broadly in line with forecast and continues to make the contributions required under the CVA proposal. It is now less than two years form successfully concluding the CVA.

What if a CVA isn't right for my business?

There’s a wide range of solutions to cash flow problems – one size doesn’t fit all. Contact us to discuss your situation and we’ll give you an honest appraisal of your options and how we can help.

The sooner you seek advice, the more options you have and the better the prospect of success.

The benefits of a CVA

Although they don’t work in all scenarios, CVAs can be a win-win for all parties.

Management retains control of the company and can focus on running the business, rather than the day-to-day firefighting which comes with cash flow pressure.

Although the creditors will not usually recover all their monies, the CVA proposal clearly sets out what they will receive if a CVA isn’t approved (usually a liquidation scenario), so they have a clear choice between two alternatives and direct input into the outcome.

News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Aegis update

Aegis update

Over the last six years Stephen Goderski has been appointed as Administrator and / or Liquidator of a number of […]

Read more

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more

Government funding for redundancies

How we helped a distribution business to fund the costs of downsizing its workforce and return to profitability.

The client

Our client was a £12m turnover distribution business. It supplied a variety of customers in the construction and engineering sectors, importing its product mainly from China and the Far East.

Although it had been very profitable historically, changes in the markets that it supplied together with more challenging economic conditions generally meant that the Company was now losing money and had to make changes to its business model to ensure its survival.

The problem

A key part of the company’s turnaround plan was the closure of two small depots and a reduction in staff numbers within its head office. In all, around 20 redundancies were necessary. However, as is often the case, because of the length of service of many of these employees the redundancy costs were significant – close to £100,000.

Although these measures were vital to ensure the business’s viability – and to protect the jobs of the remaining 50 employees – the business was at the limit of its bank facilities and did not have the cash flow to meet these redundancy costs.

The client asked for our help in funding these redundancy costs.

If you need to make redundancies to ensure the survival of your company you may be able to access government funding.

Contact us now to discuss whether you are eligible for the scheme and how our experience of the application process can help you access the funding.

The plan

The scenario faced by the client is quite common. Businesses who need to make redundancies to survive are often the ones who can least afford it.

But the government operates a scheme which is designed for precisely this situation. The Financial Assistance Scheme (“FAS”), run by the Redundancy Payments Service (part of DBIS), can significantly reduce the cash flow impact of redundancies, if certain qualifying criteria are met.

Having made numerous successful FAS applications for clients in the past we identified that the client stood a good chance of making a successful application.

The result

The information requirement for the Financial Assistance Scheme is onerous, more so than in an HMRC Time to Pay scenario for example, but we worked with management to collate the information and prepare a FAS application on behalf of the Company, and then dealt with all of the ongoing dialogue and negotiations with the RPS.

The application was approved, with the result that the RPS paid the redundancy costs of £100,000 in full, which the company was then able to repay over an 18 month period.

The affected employees received redundancy their payments within 8 weeks of the initial application and the companies turnaround plan was able to proceed.

Cash flow advice

There’s a wide range of solutions to cash flow problems – one size doesn’t fit all. Contact us to discuss your situation and we’ll give you an honest appraisal of your options and how we can help.

The sooner you seek advice, the more options you have and the better the prospect of success.

Funding Redundancy Costs

The Financial Assistance Scheme can play a key role in turnaround situations. If you need to make redundancies for your business to survive but your cash flow can’t support it, get in touch for a no-obligation discussion to see how we can help.

We’ll talk you through the requirements, and assess your eligibility. Our fees are linked to a successful outcome, which reduces the risk of incurring professional costs for no benefit.

News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Aegis update

Aegis update

Over the last six years Stephen Goderski has been appointed as Administrator and / or Liquidator of a number of […]

Read more

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more