I was recommended to meet the MD of this company by his solicitor. Despite his best efforts to save the business after 30 years of trading he was finding it harder and harder to make a profit. It had sales of about £2 million per year.
The bank were about to suspend the invoice discounting (factoring) scheme they were using so the directors only cash flow source was about to dry up.
When we met it was clear liquidation was the best and cleanest route. He had a buyer for the business but the buyer did not want the staff and in creditors voluntary liquidation TUPE (which means Transfer of Undertakings Protection of Employment Regulations) does not apply to staff transfers. At least in liquidation the staff can make a claim from the Redundancy Payments Office who will pay out; redundancy, pay in lieu of notice, pay arrears and unpaid holidays.
We liquidated the company and helped sell the remaining assets to a trade buyer. In the circumstances this was the best outcome.
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