Every day, without fail, companies are formed and dissolved in the UK. It’s a stark contrast between the often-immense optimism of launching a business and the struggle of coming to terms with a business being liquidated.
The statistics are startling, with around 28% of all businesses failing within the very first year, and around 50% failing within the first five.
At Company Liquidation Services, we help businesses go through the legal work required to liquidate their assets, repay creditors and end their business, but we aren’t the only ones. In this article, we’re going to be looking at the latest company liquidation news from around the UK and rest of the world from the start of September. Let’s get started.
The company behind the “chaotic” Hope & Glory festival in Liverpool have gone into liquidation, owing almost £890,000 to creditors. The festival was called off on the second day after reports of serious overcrowding, long delays and acts being cancelled at the very last minute.
The liquidation is being handled by insolvency firm Butcher Woods, who said that 32 creditors were owed £888,984, including Liverpool City Council who were saddled with the clean-up operation. Other creditors include Eventbrite and Skiddle, who had given full refunds to people for the cancelled day and 50% refunds for those who bought full weekend tickets.
Telford based Smart Homes has been paced into liquidation after a client refused to pay £10,000. The company currently owe £40,000 and have gone into liquidation stating that the costs of chasing the unpaid bill were too high.
It’s believed two jobs have been lost.
Scottish Electric Group (SEG) have brought in a provisional liquidator, putting almost 100 jobs at risk. The company had most recently been carrying out a £2.6 million fit-out contract for Balfour Beatty at the new Dundee Rail Station. SEG is a trading name of Vasanat International Limited, a firm which Companies House documentation shows recently registered three floating charges.
Donald McNaught, restructuring partner at Johnston Carmichael, the liquidators in charge of the process, said that the business has struggled with cash flow pressure which it was unable to overcome, adding: “Our main objective going forward will be to preserve value in the Scottish Electric Group’s remaining assets to maximise the return to creditors.
“Unfortunately, the process has resulted in job losses and we will work with the relevant government agencies to ensure employees are provided with the appropriate support.”
A Clydebank based hoe care provider has gone into liquidation, leaving an uncertain future for the 80 staff who work provide care to around 300 people.
M7J Care provide around 27 full care packaged with a number of smaller packages, and were £360,000 in debt at the time of their last published accounts. However, in an unusual step, the company are expected to continue trading until all of the clients are moved over to a new care provider, ensuring that nobody is left without care.