Sadly, we deal a lot with the insolvency of pubs. If they are lucky (usually down to a good accountant), they have set up the ownership of the freehold or lease personally but have operated through a limited company.

The reason this is beneficial is that the company can be liquidated, and the debts end with that company closing. The owners can then set up a new company and at least carry on.

Often, we find the owners of pubs had a dream of how it would be but being on the other side of the bar is not the same. It is long hours and lots of hard work with little personal time. Often the owners have a false ‘good’ impression of the cash flow because the VAT is not payable until the end of the quarter but once they get behind with that and the PAYE they will be in trouble very quickly.

One useful insolvency tool we use for pubs is a Voluntary Arrangement – this can be used to freeze the debts whilst the pub is wound down or sold.