Should I be engaging an IP?

[PaddyWhackJoe]

Hi.

I have been running a limited company in the hospitality sector for 2 years. Its been very very difficult.

When we originally applied and took on the business, our break even point per week was £6500 per week to cover all operating costs, stock wages, etc.

In the course of the 2 years, we have been plagued by poor representation from an accountant ( since replaced), leading to a historical (2022) vat liability of £16000, a doubling in utilities and poor/sporadic billing by our landlord/pub co, resulting in us owing £12000, and a balance on an unsecured business loan that is currently £18000. Total.debt £52000.

When i break this down and add it to the variable weekly running costs ( wages, stock, rent, etc), our new b/e is closer to £8.5 k. Our weekly average Net is £7.5 so the short fall each week is contributing to an increase in the debt that we are continuously making the business carry.

If i was able/allowed to fold the company, i would be personally responsible for £20000 of the monies owed as they do not fall within my understanding of the Ltd company protection.

I have no personal assets, other than those in the company which would be valued at approx £5K on a good day.

Now that i have committed this to writing it seems quite obvious, but I would welcome any and all advice.

Thank you.

 

[Gyumri]

By the sounds of it the time has come to move on to something else if the business is not viable. Many restaurants for example just cannot even break even.

If you have personally guaranteed some of the company's debts and you have no assets then the company's creditors will be the losers.

Have you got any idea of a way forward? It sounds like you have given it your all.

As for an IP I would let the creditors decide if they want to spend money winding up the company rather than making a rod for your own back by doing the job for them.

 

[Lisa Thomas]

I'd be happy to chat with you for free to explore your options.

Here is a video explaining most options so you can do some research yourself in advance:

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

FYI you might like to post your query to the insolvency section of the forum for more opinions.

 

[Washington]

It would be wrong for me to offer advice here. I just wish the poster the best and I hope you get some good advice. from specialist people who don't try to rip you off

Remember many future successes are made by lessons learned from past failures so don't get too downhearted and good luck in whatever your future holds

 

[Elliot Green]

Happy to have a no obligation chat about the position.

My details are below.

Best wishes.

 

[Paul Kelly ICHYB]

What did the pubco offer when you discussed this with them?

 

[ChrisCallaghan]

Hi @PaddyWhackJoe ,

My apologies to coming to this thread a bit late. In answer to your question, I think it would be sensible to explore the Insolvency options available.

@Lisa Thomas and @Elliot Green have already offered to advise you, however should you need an alternative, please find my contact details on my signature.