LTD company with debts can no longer continue

[atanend]

Hi all

New here so apologies if I am in the wrong section.
Started an online retail business in April 2012. Initially 3 Directors. In time we set on 3 additional staff.

Business started declining sometime ago. Staff all laid off and 1 Director recently resigned.

Currently owe 45k bounce back loan and 46k CAPITAL ON TAP business credit card.
Owe accountants £3,800. (can pay some of that)

No other debts. We have no assets at all and no money to appoint an insolvency practitioner.
I am at present being repeatedly told that I have to do it this way. 3 phone calls today and then I found
this website so it is early days so far with regards to researching what if any options I have.

Myself and my brother have not taken a wage for the last 2 months. (only pad ourselves £833 per month for the last 3 years.
No dividends taken in last 4 years (no cars - vehicles attached to business)

Can anyone give any advice on what I should do? Desperate.

 

[Scalloway]

I assume you have stopped trading.
The next step is to write to all your creditors and invite them to appoint a liquidator. Tell them the compnay has no funds and has ceased trading.
Do not pay any single creditor from company funds. This is an illegal preference.
If you go to the legal forum you will find Insolvency Practioners (IPs) who are willing to give a short free consultation.

 

[Lisa Thomas]

Has the credit card been personally guaranteed by any of the directors?

Have a look here at all the different options:

The different options for insolvent limited companies with Covid related and other debts

In this jampacked video, I explore the following options available for insolvent limited companies: Compulsory Liquidation, Creditors Voluntary Liquidation (...

youtu.be

Scalloway's suggestion seems to be the right one based on the information provided.

More info here:

Guidance for limited companies, partnerships and other company types

Guidance about registering, filing and disclosing information with Companies House.

www.gov.uk

and here...:

Is the Spongebob Plan pants, or a fair and square way to close a company if you’re skint?

Is the Spongebob Plan pants, or a fair and square way to close a company if you’re skint?

www.ukbusinessforums.co.uk

 

[atanend]

I assume you have stopped trading.
The next step is to write to all your creditors and invite them to appoint a liquidator. Tell them the compnay has no funds and has ceased trading.
Do not pay any single creditor from company funds. This is an illegal preference.
If you go to the legal forum you will find Insolvency Practioners (IPs) who are willing to give a short free consultation.

Thanks

I assume you have stopped trading.
The next step is to write to all your creditors and invite them to appoint a liquidator. Tell them the compnay has no funds and has ceased trading.
Do not pay any single creditor from company funds. This is an illegal preference.
If you go to the legal forum you will find Insolvency Practioners (IPs) who are willing to give a short free consultation.

Hi

Thanks for the reply (s). Still trading. We are trying to continue to try pay the credit card down. Currently taking no wages. I am a guarantor for business credit card. It is other pressures (up coming bills) landlord wanting me to sign a new agreement etc that I am now facing an impossible task. Thanks for the links and advice. I will report back.

 

[Scalloway]

Are you actually making a profit on what you are currently doing? You must not trade if the company is insolvent and unable to meet its debts.
Lisa Thomas above is one of the very helpful IPs who frequent this forum.

 

[UK Contractor Accountant]

Thanks for the reply (s). Still trading

how are you trading - you said had no assets?

Stocks held are assets!

 

[Lisa Thomas]

Are you actually making a profit on what you are currently doing? You must not trade if the company is insolvent and unable to meet its debts.
Lisa Thomas above is one of the very helpful IPs who frequent this forum.

Thank you Scalloway.

 

[atanend]

Are you actually making a profit on what you are currently doing? You must not trade if the company is insolvent and unable to meet its debts.
Lisa Thomas above is one of the very helpful IPs who frequent this forum.

Tiny profit. That will be gone if I signed the new lease on our premises. Increase in rent/insurance/maintenance and electric.

 

[atanend]

how are you trading - you said had no assets?

Stocks held are assets!

We don't have any stock!

 

[atanend]

Thank you Scalloway.

Thank you Scalloway / Lisa. Really appreciate the advice / links that I have found on this site. It will now all depend on our landlord / lease. I will report back.

 

[Lisa Thomas]

Thank you Scalloway / Lisa. Really appreciate the advice / links that I have found on this site. It will now all depend on our landlord / lease. I will report back.

You're welcome. Good luck.

 

[UK Contractor Accountant]

We don't have any stock

That's strange - retail business managing to trade without any stock!

 

[Tornado220]

That's strange - retail business managing to trade without any stock!

Where did it say the OP was in retail ?

 

[Martin Patfield]

Hi all

New here so apologies if I am in the wrong section.
Started an online retail business in April 2012. Initially 3 Directors. In time we set on 3 additional staff.

Where did it say the OP was in retail ?

I mean where the opening post starts "started an online retail business".

 

[Newchodge]

Where did it say the OP was in retail ?

First post, second line.

 

[UK Contractor Accountant]

I suspect the £46K Capital on Tap credit card is personally guaranteed which is why they are continue to trade.

 

[Tornado220]

So whilst I didn't see the bit about "retail" I did see the bit where the OP stated they are a personal guarantor for their business credit card.