Whether this week’s budget gave you a Halloween scare or you’re breathing a sigh of relief, we’ve got all the other important and interesting business and insolvency news stories you might have missed from this week right here for you to catch up on.
So if you want to know why water and energy bills will continue to bite SMEs despite anything announced in the Budget ; everything you need to know about Time To Pay Arrangements; what practical steps a business can take if it receives a CCJ and everything you need to know about bailiffs and their legal powers – you can read all these stories and more at our advice centre page.
SeventyNine Lighting
A specialist lighting contractor based in Cheltenham has gone into administration as a result of ISG going into insolvency in September 2024.
Seventynine Lighting Ltd was founded in 2006 and worked on a string of retail and commercial fit-outs as a lighting design and installation subcontractor.
After their biggest customer ISG ceased trading, Seventynine found itself with £2 million in bad debt. This proved insurmountable for the company and the directors concluded that an orderly wind down of the business should be pursued under the protection of an administration moratorium.
As a result the business has ceased to trade and 30 staff have seen their positions made redundant.
A statement was issued on behalf of the business that said: “Although Seventynine Lighting has historically been a profitable and successful business, its sudden insolvency is unfortunately not an uncommon occurrence in the construction industry.
“A major contractor going into administration materially impacts the supply chain of other subcontractors involved in its projects. Whilst some of the inherent risks of the construction sector cannot be fully removed, it can help if subcontractors take steps to protect themselves.”
Pidcock Motor Cycles
An East Midlands based motorcycle retailer that has been operating for nearly 50 years has gone into administration with the loss of 20 positions.
Pidcock Motor Cycles Ltd were formed in 1975 and are an approved retailer for a number of well-known manufacturers that fell into financial difficulty following a challenging trading period linked to cost inflation and weak consumer demand.
Their Ducati and Triumph sites have closed permanently but administrators are looking for buyers for their BMW site in Long Eaton.
A statement from the business said: “Pidcock is not the first retailer to struggle in challenging market conditions over the past year. The company is a reputable seller, partnered with some of the world’s best-known bike brands, and we’re not surprised that there has been interest from prospective buyers.”
Una St Ives
A Cornish resort has announced the closure of its accommodation and restaurant with immediate effect.
Una in St Ives was a popular destination with locals and tourists alike.
A statement said: “It is with the utmost regret that the board of directors for Kingfisher Una Resort Ltd have appointed administrators.
“This action unfortunately results in the closure of several operational elements of the resort including the letting of accommodation and the opening of Una Kitchen in its present form.”
Guests will continue to be allowed to use the leisure club and spa while cafe style food will be served in the bar area.
Accident Injury Solicitors
A personal injury firm in Bolton is going into administration after suffering “severe financial strain” after 16 years of trading.
Accident Injury Solicitors issued a statement saying: “We confirm we are entering liquidation following severe financial strain exacerbated by recent regulatory reforms in personal injury law.
“The significant downturn in revenue and the challenging post-pandemic landscape made it increasingly difficult to sustain operations. The firm acknowledges the hardship this outcome may pose for its creditors, who have supported Accident Injury Solicitors over many years.
“Despite our best efforts to adapt to the changing market conditions, the whiplash reforms in particular placed significant pressure on our business model, affecting client volume and profitability.
“The firm made concerted efforts to diversify but regrettably, this was insufficient to offset the challenges. We remain committed working with creditors and stakeholders to provide transparent communication throughout the liquidation process.”
Steps To Work
A West Midlands based charity designed to help unemployed people to get back into work has gone into voluntary liquidation after running into financial difficulties.
Steps to Work operated in Birmingham, Wolverhampton and Walsall and ceased operations after running a financial deficit with no realistic way of servicing them. The charity employed 36 points at the point of closure who have been made redundant and helped to look for other positions.
A statement from the business said that its fortunes were dependent on the performance of its subsidiary Starting Point Recruitment (SPR), a local temp and recruitment agency which donated any profits to Step Into Work.
SPR’s loss of a major contract with Walsall Council last year had a major impact. An ongoing legal dispute between the two is ongoing with the council being granted an interim injunction in September.
The charity said the resulting loss of income exacerbated “long-standing financial challenges including legacy contract issues”.
The Charity Commission has confirmed that it has been asked to look into finance and governance concerns raised with it around the charity’s demise, including claims around the charity’s management and potential conflicts of interest.
They said: “We are currently assessing concerns about Steps to Work in relation to its governance and financial management. This will inform any next steps.”
People Know How
An Edinburgh social inclusion charity is closing in December with the loss of 24 positions.
People Know How runs local services and national campaigns to help people overcome social barriers and operates a national digital support helpline.
A statement issued by the charity said: “Due to the drastic changes across the funding landscape in Scotland, at the end of September, our board and chief executive were faced with a difficult conversation in light of the lack of funding for the current and forthcoming financial years.
“Over the past few months there have been devastating funding cuts across the sector and a drastic shift in the funding landscape. As a result, we’ve seen fewer options for long-term funding with other funders closing entirely and leaving those that remain severely over-subscribed.
“The decline of available funds is directly at odds with the increasing need of the communities we support. Over the last few months we have seen attendance to our digital groups and calls on our digital support helpline increase.
“Consideration is being made on how we close in the best way possible to value all the work and achievements since 2013. We’re proud of what we have achieved over the last 11 years, supporting communities to improve wellbeing across Scotland.”
MYA Clinics
A Harrogate cosmetic surgery business has appointed administrators four years after entering into a company voluntary arrangement (CVA).
MYA Clinics have six locations across the UK in Leeds, Birmingham, Manchester, Bristol and London as well as their Harrogate headquarters.
Founded in 2007, the group offered a variety of cosmetic procedures including liposuction, face and neck lifts, rhinoplasty and breast surgery.
The group entered a CVA with its creditors in January 2020 in order to give it time to pay off its debts but the Covid-19 pandemic affected its ability to pay regular contributions throughout 2020, 2021 and early 2022.
The tipping point appears to have been a disputed claim with HMRC over £9 million relating to VAT that they argue should have been paid on historic procedures. MYA disputed the claim but the CVA supervisor has noted: “The result of the HMRC claim will have a huge impact on the outcome of the CVA as, if upheld, HMRC’s claim will increase significantly from £987,396 and in turn reduce the potential dividend to the general body of creditors to a minimal amount.”
No matter what the Chancellor has planned for you and your business in the next 12 months, there are still decisions and changes you can make to see improvements and strengthen your hand in the remaining nine weeks of 2024.
Whatever your goals, the sooner you get in touch with us to arrange a free initial consultation, the sooner you can begin to implement whatever you and our advisors agree will get you closer to them.