Businesses are looking ahead to the Budget next week which might be the most consequential in many years.
Nobody, possibly not even the Prime Minister, knows for sure what all the details and announcements will be but they are certain to affect every business in the country to some degree or another.
In the meantime we’ve got all the important and interesting business and insolvency news stories you might have missed from the past seven days right here to catch up on.
So if you want to know more about what the Chancellor is likely to announce next week in our Budget preview; why business insolvencies rose slightly last month in England and Wales and why they have reduced in Scotland during the same period – you can read all these stories and more at our advice centre page.
Inverness Caledonian Thistle
Scottish League One side Inverness Caledonian Thistle have announced they have gone into administration.
As a result the Scottish Professional Football League have docked them 15 points as a punishment, taking them from seventh place to bottom of the league.
A statement from the SPFL said: “The Scottish Professional Football League has today confirmed the imposition of a 15-point deduction for Inverness Caledonian Thistle as per SPFL rules on clubs suffering an insolvency event.”
The club said: “We can confirm we have formally appointed administrators and gone into administration. We understand this will be a difficult and uncertain time for the club, its staff, its loyal fan base and the local community.
“A plan is in place to allow the club to continue to trade whilst efforts to secure a long-term future are explored.”
Manager Duncan Ferguson had been working for free having already taken two pay cuts before leaving this week.
Under SPFL rules, even if they escape relegation this season, Inverness will start next season on minus five points.
Active Arena
A community football arena and sports bar in Lincoln is looking for a buyer following the owners ceasing trading and going into administration due to cash flow shortages.
Active Arena CIC opened in 2019 but immediately saw its profit margin depleted due to rising energy prices and other cost increases associated with the cost-of-living crisis.
A statement from the directors said: “The closure of the Active Arena site will be a blow to the local community who have welcomed the award-winning facility as a fun and safe place to socialise and become active.
“Administrators are eager to arrange a sale that will allow the company to return to serving its loyal customers as quickly as possible. The arena is an excellent opportunity for the right buyer to build on what is already an integral part of the community with a strong customer base and brand recognition.”
Intake Transport
A Scunthorpe based logistics business has filed notice of intention to appoint an administrator.
Intake Transport specialise in haulage and warehousing fabricated steel and operated a fleet of over 50 trucks at their height since beginning trading in January 1995. The company also has depots based in Sheffield, West Lothian and South Wales.
They have delivered steel for the Edinburgh airport expansion project, the new Heart of Midlothian stadium and the Gravesend railway station refurbishment scheme.
The decision by British Steel and Tata to switch from blast furnaces to electric arc furnaces at their plants in Scunthorpe and Middlesbrough may save some steel production in the UK but has had an adverse impact on associated businesses such as Intake Transport.
Nikal
A Blackpool based construction firm has filed a notice of intention to appoint administrators after three directors resigned.
Nikal was set to deliver the new £300 million Blackpool Central regeneration scheme providing a hotel, theme park, theatre and along with car parking spaces. To date only the car park has been built and is operational with reserved matters permission required to bring forward the other elements of the leisure scheme.
Work on the scheme was due to recommence early in 2025. A spokesperson for Blackpool council said: “We had been negotiating with Nikal on how they would deliver the next phases of leisure and accommodation and will be speaking to them to understand how this news affects those plans.
“We still have a clear commitment to deliver Blackpool Central and will be considering our next steps to progress it.”
CB Printforce
An on-demand book and journal printer CB Printforce UK based in Biggleswade has filed a notice of intention to appoint administrators and ceased trading as a result.
Formed in 2019 the business was part of the Netherlands-based Printforce group, specialising in printing soft and hardbound books, magazines and journals.
34 positions are expected to be made redundant as a result. The group’s other businesses and operations remain unaffected.
Linzy Jay
A Blackburn-based supplier and manufacturer of bridal and communion wear has ceased trading and entered administration with the loss of 12 positions.
Linzi Jay was established in 1995 and supplied bridal accessories, bridesmaids dresses and communion wear to retailers in the UK, Europe and worldwide.
They opened a new 10,000sq ft warehouse in the town that was officially opened by HRH The Princess Royal in 2004 and had a manufacturing facility in Lincolnshire.
McKenzie Jones Associates
A Liverpool financial business which claimed to help customers reach an early resolution to their Individual Voluntary Arrangement (IVA) but instead exposed them to the risk of their debt solution failing, has been closed down.
McKenzie Jones Associates was wound up at the High Court last week and the official receiver was appointed as the liquidator.
The company sent unsolicited letters to people who had an existing IVA, which led to offers to help secure an early resolution to the debt in return for a fee. IVAs are legally-binding agreements with creditors to pay all or part of a person’s debts and usually last about five years.
Staff told customers that it would refund their fee if they didn’t achieve an early resolution of their IVAs. They also falsely advised customers that their IVA supervisors, insolvency practitioners administering their debt solutions, must place the IVAs on hold and suggested customers should refuse to speak to them if contacted.
McKenzie Jones Associates were not registered with the Financial Conduct Authority (FCA) to provide debt advice and their “advice” actively exposed customers to the risk of their IVAs failing.
David Usher, Chief Investigator at the Insolvency Service said: “McKenzie Jones Associates took advantage of people in debt to offer them a solution that was unlikely to work and gave advice which jeopardised the success of their IVAs.
“The Insolvency Service has powers to remove companies that operate against the public interest. We will shut down businesses that prey on people facing tough times and protect the public from further financial harm.”
Customer records showed that 424 files related to their scheme and investigators found that the firm had received £54,900 from clients but had made no provision to pay refunds. None of the customers who responded to the investigation had benefited from the services offered by the company or received a refund.
Directors failed to maintain or hand over all the company’s books so they were unable to establish the true financial position of the company. They were also unable to verify the accuracy of accounts from December 2020 to December 2021 and confirm whether receipts and payments were legitimate business transactions.
McKenzie Jones Associates ceased trading in April 2023.
Zytronic
A Gateshead electronics manufacturer is considering a solvent liquidation following a strategic review.
Zytronic manufactures touch overlay sensors for interactive displays on various machines in the self-service, gaming and industrial sectors and have since the 1940s when they were formed.
Unfortunately the business has seen sales failing to recover to pre-Covid levels due to several of their customers in North America being affected by the bankruptcy of Aruze Gaming America while wider overstocking due to supply chain concerns had also hit them hard.
A statement from the business said: “While the company is expected to generate a 22% increase in revenues in the second half of FY24 versus the first half, trading conditions remained challenging and based on current order intake, the board does not anticipate a material recovery in volumes over the short to medium term.
The company has witnessed a sustained lack of recovery in business performance to its pre-Covid operating level and management’s efforts to battle against a difficult macroeconomic environment have not delivered meaningful results. After observing disappointing volumes in FY24, the board has come to the opinion that it is unlikely that a significant improvement will be forthcoming without a strategic catalyst.”
GS UK
A Nottingham wholesale textile business has ceased trading and gone into administration with the loss of ten positions.
GS UK was established in 1988 providing garment decorating services to the UK textile industry for over 30 years supplying thread stock and equipment including embroidery machines, printers and laser cutters.
A statement from the business said: “It is deeply regrettable that GS UK has been forced to cease trading due to a series of challenging circumstances. This was a sad ending for a long-established company.
“Our thanks go to all our employees who worked hard during a difficult time and gave the company every chance to find a buyer but unfortunately it simply wasn’t to be.”
Stapleford Park Hotel
A Grade-1 listed luxury hotel in Leicestershire has closed and gone into a creditors’ voluntary liquidation process.
Stapleford Park Hotel confirmed the news in an email to members this week saying: “Unfortunately, as a result of adverse trading conditions and the financial position of the operating company, Stapleford Park Limited, the Hotel cannot continue to operate and management have little option but to cease to trade Hotel with immediate effect including club membership.”
The hotel hosted weddings as well as having a popular restaurant and spa.
The hotel first opened in 1988 and hosted weddings at its venue along with having a popular restaurant and spa/leisure facilities as well as 500 acres of grassland for guests to explore before returning to one of the 55 bedrooms.
Classic Mineral Water
A Northern Irish mineral water company is going into administration with the potential loss of 80 jobs.
Classic Mineral Water based in Lurgan, Co Armagh has been supplying bottled water for over 76 years and includes customers such as Lidl, Tesco and Aldi.
It recently welcomed Northern Ireland Economy Minister Conor Murphy to its factory facility but directors confirmed that financial losses have now forced them to enter the administration process.
In August, the Republic of Ireland’s Food Safety Authority recalled some of their water from supermarket stills as a result of “possible visible particles”. On August 8th the company said it had stopped production immediately in order to undergo a borewell cleaning programme.
This week employees were told the news that the company was entering administration.
Directors confirm that the discovery of tainted products caused them to cease production and undertake an intensive cleaning programme to resolve the matter which lasted nine weeks. Due to this stoppage, financial losses have increased.
Administration helps buy a business time to find solutions to its financial issues so directors will be hoping that they will be able to put their problems behind them and resume trading profitably.
Hopefully Halloween will be the scariest event taking place next week for business owners and directors but if the Chancellor unveils a chilling tale of terror then there’s something you can do instead of pulling the covers up over your head.
You get in touch with us to arrange a free initial consultation.
Once one of our advisors gets a clearer picture of your situation then they can work with you to build a strategy and action plan that you can begin to implement straight away – without any crucifixes or garlic!