Close Hospitality Ltd Company

[Parki]

I have a hospitality business which has been hit and not really recovered from the
COVID lockdown. Now one of my electricity providers has increased my monthly bill by just short of 2000%. I am in dispute with them but to be honest have lost the will to
continue with the business. I am a limited company with just this electricity bill some HMRC debt and a BBL. What is my best way to close the Company and how do I proceed with the BBL? Ideally i’d like to be closed by the end of December .

 

[Frank Wessely]

I have a hospitality business which has been hit and not really recovered from the
COVID lockdown. Now one of my electricity providers has increased my monthly bill by just short of 2000%. I am in dispute with them but to be honest have lost the will to
continue with the business. I am a limited company with just this electricity bill some HMRC debt and a BBL. What is my best way to close the Company and how do I proceed with the BBL? Ideally i’d like to be closed by the end of December .

Hi Parki,

Can you provide some further information please.

What assets does the company have, if any? Do you have staff?

Unless all the debts can be paid in full followed by a strike off (or a solvent winding up) I think you are looking at an insolvent liquidation for the company. In that event the assets will be realised to pay the costs of liquidation and if sufficient, pay a dividend to the creditors. Following that, the company will be dissolved. The process is somewhat complicated but this a VERY brief summary.

The bank will claim for the BBL debt under their Government guarantee.

The closure can take effect quite quickly depending on the circumstances.

You will also need to consider your next business venture (or employment).

If you would like to discuss your options further my contact details are below.

I hope this is helpful.

Thanks.

 

[Robert Moore]

Hello. Sorry to hear of the company's issues.

Given that the company is most likely insolvent then yes you should consider creditors voluntary liquidation. Only licensed insolvency practitioners can liquidate a company so be wary of those offering to do it for free/buy the company etc. Quantuma or a firm like ours KSA Group would be able to give proper advice. I enclose a link to our guide to liquidation. https://www.companyrescue.co.uk/fil...e-To-Creditors-Voluntary-Liquidation-2021.pdf

Feel free to call us on 08009700539 for free initial advice

 

[Parki]

Hi Parki,

Can you provide some further information please.

What assets does the company have, if any? Do you have staff?

Unless all the debts can be paid in full followed by a strike off (or a solvent winding up) I think you are looking at an insolvent liquidation for the company. In that event the assets will be realised to pay the costs of liquidation and if sufficient, pay a dividend to the creditors. Following that, the company will be dissolved. The process is somewhat complicated but this a VERY brief summary.

The bank will claim for the BBL debt under their Government guarantee.

The closure can take effect quite quickly depending on the circumstances.

You will also need to consider your next business venture (or employment).

If you would like to discuss your options further my contact details are below.

I hope this is helpful.

Thanks.

Hi, the Company currently has 6 staff. The manager has expressed in an interest in carrying on but obviously without the BBL.

The only assets are the fixtures and fittings in the premises. I obviously want to close it down with as little cost as possible as I am not on the payroll I will have no entitlement to redundancy and no spare funds to pay for an IP.

 

[Lisa Thomas]

Most IP's will talk to you initially for free and run trough the company's options.

I presume there is no cash or debtors available to cover the cost of liquidation.

If the company cannot afford Liquidation (via Court or via a Creditors Voluntary Liquidation) and the director/s do not wish to pay personally to cover some/all of the costs then dissolution may be the only alternative.

Please note that if the company is not liquidated formally then the staff will then have to go through tribunals to get any redundancy pay due and I understand this may take over a year.

Also, I believe tribunal wards will not include any payments owed for outstanding holiday, wage arrears, notice or pension contributions due.