The new government has just unveiled their first legislative package in the King’s Speech this week with some interesting areas for business owners and directors. 

We’ll give you a breakdown and policy analysis soon to let you know how this could affect you and your employees but in the meantime you can catch up on the rest of the week’s important business and insolvency news stories right here. 

If you want to know what the new government plans to do with Capital Gains Taxes; Why British Gas has tripled its use of winding up petitions against debtors and read more about the news affecting accountants – you can read all these stories and more at our advice centre page.

Carpetright

The national carpet and flooring retailer with 272 UK stores and over 1,800 employees has filed a notice of intent to appoint administrators.

A sale is believed to be the preferred method for attracting additional investment. 

The company was founded by Lord Harris of Peckham in 1988 and was previously listed on the stock market but was delisted in 2019 by its biggest investor, Meditor. It entered a company voluntary arrangement (CVA) in 2018 which saw the closure of 92 sites. 

A lack of consumer spending in recent years and a rise in competition are thought to have caused problems for the brand along with suffering a major cyberattack in April that temporarily halted trading.

Skin

One of the UK’s largest plastic surgery providers with more than 70 branches across the country has closed with immediate effect with the loss of 800 positions. 

Skin was founded in 1990 in Birmingham but expanded and had 17 clinics across London alone. They also owned sub-brands such as the Harley Medical Group and the skin technology company ABC Medical. 

They provided services from tattoo and wart removal to lip filler and thread lifts, a type of facelift. 

A statement was placed on the company’s deactivated website and telephone lines saying that they had “undertaken an extensive process to secure investment to enable it to continue trading but sadly they’d been unsuccessful.

“We recognise this outcome will have a significant impact on our team members and our customers and we’re deeply sorry for the stress and inconvenience this has caused.”

Antic Hospitality Group

A popular London pub chain has gone into administration and put its 13 venues up for sale as a result. 

Antic Hospitality Group operates in south and east London and admitted that many of their pubs had been struggling since the Covid pandemic hit.  

No closures are expected yet and venues will continue to operate while administrators work out the best solution for the company.

Trinzic

A solar energy project developer owned by Thames Water’s parent company is going into voluntary liquidation. 

Trinzic Operations is owned by Kemble Water Holdings which also owns Thames Water. The business is solvent so will be closed through a members’ voluntary liquidation with the owners hoping to recoup money from the company’s assets. 

The business was set up in 2021 to develop a floating solar project on Thames Water sites to boost the firm’s renewable energy generation. The electricity generated would be sold back to Thames, a significant energy user with a £220 million energy bill, at an agreed rate, reducing its costs and carbon emissions in the process. 

37 employees will be made redundant as a result. 

Broad Lane Leisure

A Warwickshire based caravan dealer that had traded for over 50 years has gone into administration and ceased training.

Broad Lane Leisure is a family-run business that has supplied specialist leisure vehicles including campervans, caravans and motorhomes since 1971. 

Despite its longstanding trading history and reputation, the company had recently suffered financially as a result of challenging trading conditions primarily due to a drop in demand. This ultimately led to cash flow difficulties that severely impacted the business’ ability to continue trading. 

A statement from the business said: “Unfortunately, mounting pressures resulted in the business being unable to meet its financial obligations. 

“Regrettably, this meant ceasing to trade and reducing the workforce to a skeleton staff.”

34 employees have been made redundant as a result.

Charles Henshaw & Sons Ltd

A 120-year-old Edinburgh construction business specialising in facades has gone into administration. 

Charles Henshaw & Sons Ltd was founded in 1904 and employed 72 people offering full design, fabrication, supply and installation of building facades across various sectors including commercial, residential and public buildings. 

It worked on landmark projects including Usher Hall in Edinburgh, Glasgow Queen Street Station and helped conserve major pieces of sculpture including Greyfriars Bobby and Piccadilly’s Eros statue in London.

Managing director Graham Chung said: “Henshaw cladding solutions have set industry standards and we have worked hard for our position as a trusted partner in the facade sector of the construction industry.

“I am proud of our distinguished reputation built over many decades, and it is with deep regret that, after exploring every avenue to keep afloat, we are unable to continue. Despite its strengths, the business has faced significant financial pressures due to escalating costs, problematic legacy contracts and delays in initiating new projects. 

“Our goal is to navigate these challenges effectively, preserving as much value as possible for all stakeholders involved.”

True Skincare

A well-known skincare brand that appeared on “Dragon’s Den” has gone into administration. 

True Skincare was based in Taunton and accepted an offer of investment from entrepreneur Deborah Meaden but founder Emma Thornton decided not to proceed with the deal. 

Ms Thornton brought experience from working in senior positions at Elemis and Bulgari. Despite a promising start and considerable recent growth, True Skincare encountered several insurmountable challenges. 

The rapid expansion of the business required additional investment, leading to an increase in operational costs and the decision to bring manufacturing and fulfilment in-house. 

Additionally, unexpected financial difficulties of a key trade partner were exacerbated by the wider impact of the Russian-Ukraine conflict and placed significant strain on the company’s cash flow. 

Coconut Tree CVA

A Sri Lankan restaurant group claiming to be the largest outside of Sri Lanka has entered a company voluntary arrangement (CVA) six months after launching a crowdfunding campaign to attract new investment. 

Coconut Tree was founded by five Sri Lankan friends living in the UK and has grown from trading out of one pub to eight restaurant locations.

They closed a branch in Cardiff in March this year and will not renew the lease on one located in Mill Lane in London.

Eel Screen Company

An eel protection business based in Boston in Lincolnshire has been closed down by the Insolvency Service after two cases of government loan misconduct. 

The Eel Screen Company Ltd was wound up in the High Court in Manchester after providing inaccurate and inconsistent information when it applied for a £50,000 Bounce Back Loan in 2020 and for a £225,000 Recovery Loan Scheme payment in 2022. 

David Hope, Chief Investigator at the Insolvency Service said: “Our investigations revealed concerns that the Eel Screen Company was being used as a vehicle to fraudulently obtain significant, government-backed loans during the pandemic. 

“Bounce Back Loans in particular were made available for trading businesses adversely affected by Covid and were issued based on what should have been accurate financial statements. 

“The Insolvency Service will not hesitate to apply to have companies wound-up in the public interest in such cases.”

Directors told investigators that the business was involved in the installation of screens to protect eels in rivers. A second director said it had since moved into drainage and most recently the construction business.

Current and former directors also failed to produce accounting records at the request of the Insolvency Service. The Official Receiver has been appointed as liquidator of the company.

Blenheim House Construction

A Surrey based contractor has gone into administration six months after recording its first loss in 26 years of trading. 

Blenheim House Construction is a building and fit-out specialist which operates in the high-end London and South East area employing 80 staff. 

Since then the company ran into some cash-flow issues which caused it to struggle to pay some key subcontractors on time. These were understood to be caused by delayed payments from a client which themselves were impacted by Henry Projects construction going into liquidation. 

A creditor issued a winding-up petition against the firm last week in pursuit of owed sums but administration, if accepted, will provide a legal moratorium against ongoing action while the company restructures itself. 

Sporting Force

A Darlington based charity that supports veterans has announced it is closing due to significant financial challenges. 

Sporting Force supports veterans and their families by providing education, exercise and social events to help relieve social isolation. 

A statement from the board of directors said that they had made the “difficult decision to cease operations after careful consideration and a thorough evaluation of their options.

“Funding cuts, decreased donations and increased operational costs have led to a situation where, despite our best efforts to secure additional funding and reduce costs, we have been unable to achieve a sustainable financial position.”

Sporting Force said its priority was to ensure a smooth and responsible wind-down process which would include communicating with its beneficiaries, partners and donors to inform them of its closure. 

They remain committed to fulfilling their outstanding obligations and ensuring that ongoing projects were transitioned or concluded responsibly with the charity’s assets set to be transferred to another local charity – East Durham Veterans Trust – that shares its mission.

Axis Studios

Scotland’s largest animation studios has gone into administration with the loss of 162 positions with immediate effect. 

Axis Studios launched in 2000 and worked on major film and TV projects including Hellboy, Harry Potter, Doctor Who, Red Dwarf and Shetland.

Four employees remain on staff to assist with the winding down of Axis Productions Limited and Axis VFX Limited and transfer knowledge to the administrators.

A statement from the business said that they had been forced into this move due to a lack of work during the post-Covid downturn and increasingly high labour costs. 

“Axis has been a studio of choice for key production companies and has produced content for household names such as the BBC, Netflix and Blizzard Entertainment. The company experienced a high demand for its services during Covid as animation and visual effects for TV, film and video games skyrocketed. 

“Unfortunately Axis has more recently been impacted by a decline in customer projects, as well as increases in labour costs which have resulted in severe cash flow problems. The directors worked tirelessly to explore alternative solutions, but ultimately had to take the difficult decision to seek the appointment of administrators.”

While His Majesty The King outlined the government’s roadmap for the next few months ahead, it’s a good idea to consider your own one. 

Are your plans and strategies leading you in the right direction? 

If they’re not or if you think they could use a kickstart then you should get in touch with us today to arrange a free consultation with one of our advisors.

Once they get a full picture of your business and its circumstances, they’ll let you know what options are available to you and depending on your goals and ambitions, how to implement them successfully starting now!