Recently there have been several articles in the news, on websites or blogs with experts giving their opinions on the recent collapse of BHS and Austin Reed. Big corporate insolvencies, whilst they do not occur regularly, go to show how fragile business can be.
Take the other high street casualties we have seen over the years, Woolworths, Blockbusters and Borders to name but a few. Give a thought to the fact that the press thrive off the doom and gloom, the alleged wrong doing, the greedy pockets of shareholders and directors and the likely fees that are going to be charged by professional advisors to deal with the whole process.
Little time or exposure is given to the hard work that goes on behind the scenes of having to deal with not just administrations/liquidations of some of the biggest corporations on the high street, but also the advice and procedures that are undertaken for the countless number of SME’s out there that find themselves in the distraught position of having to take insolvency, restructuring or financial advice.
A recent BBC article: “High Street shops that have come back from the brink” gave a refreshing look on the public’s perception of assuming that if a store goes into administration, it’s gone. The article stresses that nobody is shouting about the success stories.
Plenty of stores/businesses fall into insolvency, often through no fault of their own and come out the other side fitter and healthier. It is pretty naïve to think that every business that is incorporated will endlessly survive. If this was the case there would be no financial cycles, economies would simply stagnate and there would be no healthy competition.
Whilst the statistics paint an improving picture these are often undermined by the power of the media and the corporate failures that are grabbing the headlines. In short:
- The value of bad debt left to companies is falling (2015 figures show a fall of 9 percent from 2014).
- The volume of bad debts has fallen by a quarter since 2013
- The number of company closures has declined in the last three years, and
- Quarterly insolvency statistics show a drop on the number of formal insolvency appointments.
At some stage every business is going to have to have an overhaul or restructuring (or sometimes failure). Whether it’s a move that has come about as a result of advances in technology such as Blockbusters – renting films to streaming movies or a printing business moving from Heidelberg printing presses to digital print. Either way directors or shareholders are going to need the right professional advice no matter what the outcome or perception.
We are an independent firm which specialises in providing corporate and personal rescue, recovery and insolvency solutions to those in financial difficulty. We understand the extreme demands placed on us all to succeed. Against this backdrop, sudden changes in the environment can leave a business or individual facing unexpected financial pressure. At Bailey Ahmad Business Recovery we are committed to help you find a solution to your situation. We will work with you to understand the challenges you face in detail and provide clear, honest and practical advice.