All the business & insolvency news stories you might have missed out on this week.
There’s still a few weeks of summer left to enjoy and get the well earned break you and your staff deserve.
Hopefully you can use a few minutes of it to catch up on all the important and interesting business & insolvency news stories you might have missed from the past week.
So if you want to know how to avoid making an overdrawn Directors’ Loan Account (DLA) an anchor; how a CCJ can directly impact directors; why a Members’ Voluntary Liquidation is still a director’s advantage and how you can still give your business a summer boost – you can read all these stories and more at our advice centre page.
River Island
The High Street retailer is facing an uncertain future as shareholders and creditors clashed over restructuring plans.
The struggling business has put forward a survival plan that would involve closing 33 loss-making stores with rent cuts enacted for a further 71 and a proportion of existing debts being written off.
In order for this ambitious plan to be passed, 75% of each class of creditors would have to vote for it. These include landlord creditors, business rate creditors, general creditors and Blue Coast who are a secured lender and have promised to make a £40 million funding facility available if the proposals are approved. The majority of creditors are landlords.
While some classes of landlords voted for the plan, it was not unanimous so the case will pass to the High Court to decide what happens next.
The High Court has the ability to approve the plan over the objections of other shareholders if at least one class votes 75% in favour.
Serpahine
Additionally, the label’s founder Cecile Reinaud will return in an advisory capacity to work with the new owners on brand strategy. Reinaud said: “Next has a strong track record of buying retailers out of bankruptcy” and noted that as well as being leaders in logistics and e-commerce: “It has a large roster of brands that are targeted at women and Seraphine will sit well in their portfolio.”
The maternity brand favoured by the Duchess of Cambridge has been bought out of administration in a pre-pack sale by Next.
Next said they would provide a “stable platform” for Seraphine and will focus on “creating stylish, practical solutions for new and expecting mums around the world.”
Closet London
Another British womenswear label has gone into voluntary liquidation after nearly 30 years of successful trading.
Closet London was founded in 1996 and became known for bold prints and tailored silhouettes, producing all their collections in the UK. The company reported a multi-million turnover at its peak but ultimately struggled to recover from the impact of the Covid-19 pandemic.
Directors also cited Brexit-related trade barriers, rising sector costs and seasonal volatility as other factors in the business’s decline. Remaining assets such as stock and machinery are of low resale value.
A final statement from directors said: “Closet London has been a bold and distinctive presence in British Fashion for nearly 30 years.
“While the business could not withstand today’s retail pressures, its design legacy endures.”
NRS Healthcare (Nottingham Rehab)
A healthcare equipment supplier which works with several NHS trusts and 40 councils in England and Northern Ireland has gone into liquidation after winding-up orders were made against it.
NRS Healthcare, also trading as Nottingham Rehab, saw the Official Receiver appointed this week. They will wind-up the companies in accordance with their statutory duties. They also have a duty to investigate the cause of each company’s failure as well as the conduct of current and former directors.
The government put in place plans with local authorities to minimise any potential short-term disruption and find alternative suppliers in the longer term. The Local Government Association, which represents local councils in England, issued a joint statement with the Association of Directors of Adult Social Services saying: “We are committed to ensuring that services remain as reliable as possible, especially to those people with the highest levels of need during this period of uncertainty.”
NRS is based in Coalville, Leicestershire and employs approximately 1,500 people across the UK. The company suffered a cyber attack last year and had been losing money on some of its council contracts.
St Mary’s College and Barlborough Hall School
Two private schools in Derbyshire which date back almost 200 years have gone into administration amid increasing financial pressures.
St Mary’s College and Barlborough Hall School have closed with immediate effect.
The college first opened its doors in 1842 while Barlborough Hall was launched as a preparatory school in 1939. In 2004, the schools became an independent charitable trust governed by a dedicated board of trustees.
A statement from the institutions said that for the past ten years they had faced “wider challenges affecting the independent education sector in the UK including the addition of VAT on school fees and the removal of business rates relief for independent schools.
Despite the “extraordinary efforts of staff, parents and supporters” the schools have been “unable to reach a sustainable financial position.”
Despite these efforts no viable option emerged and as of the end of July, the level of debt and lack of a realistic path to financial viability meant that the schools had no alternative but to proceed into administration.
Insolvency Service shuts down five companies for fraud
Five companies based in South London and Croydon have been closed by The Insolvency Service after submitting false accounts, claiming fictitious turnovers and profits without any evidence of legitimate business activity.
Automarket Europe Limited, Integra Group Limited, Maxell Limited, Montana & Montana Limited and Supermarket PLus Ltd were all linked through shared office addresses and falsely claimed to have turnovers exceeding £642 million while lacking any genuine business operations.
Investigations by the Insolvency Service were initiated following referrals from Companies House as part of the ongoing enforcement of the Economic Crime and Corporate Transparency Act 2024 aimed at enhancing corporate accountability.
The Act granted Companies House the authority to eliminate any false or misleading information present in company registers, bolstering collaboration between agencies to deter the misuse of UK corporate structures.
The companies were wound up in the High Court in Manchester on July 31.
Dave Magrath, Director of Investigation and Enforcement Services at the Insolvency Service articulated concerns surrounding the potential exploitation of their inaccurate accounts remarking that “there was a genuine risk that these wildly inaccurate accounts could have been used to mislead potential customers and suppliers.
He said: “UK businesses rely on this information to make informed decisions about who they trade with, lend to and invest in.”
None of the five companies cooperated with the inquiries and did not submit accurate accounting records. The Official Receiver has been appointed as the liquidator for all involved companies.
Greater Manchester Chamber of Commerce
Greater Manchester Chamber of Commerce has filed a notice of intention to appoint administrators, blaming challenges in its Chamber Space service arising from the Covid pandemic. The organisation said it was a proactive step allowing it to “pause, review and attempt to safeguard the future of our business.”
It’s the largest Chamber of Commerce in the UK with more than 4,000 members representing 350,000 employees – a third of the total workforce of Greater Manchester.
A statement from the Chamber said: “In 2017, we introduced the Chamber Space service with the vision of becoming a major centre for business in Greater Manchester. Shortly before the pandemic, we expanded the venue by opening a new conference suite, in response to rising demand.
“The pandemic and the aftermath have created sustained financial pressures. The lasting changes in working patterns, a fall in demand and rising operating costs have made Chamber Space an unsustainable part of the business.”
Clive Memmott, chief executive of the chamber, said: “Like many of our members, the Chamber has faced increasing financial and operational pressures, particularly in the venue and conference market. This step allows us to consider the best route forward for the core business, to enable it to focus on continuity of service for our members and the wider business community.”
This follows the St Helens Chamber closing last year after a “perfect storm” of challenges led to it entering administration.
EBuyer
The UK’s second-biggest PC retailer has received a winding-up petition this week from its landlords.
Formed in 2000, Ebuyer has also reportedly been trying to sell the business but negotiations have fallen through and now Urban Logistics Acquisitions 6 Limited filed the petition for non-payment of rent.
This would be the second major PC manufacturer closure with BOX closing last year.
The industry saw massive growth in the Covid pandemic era but since then massive headwinds including Russian’s invasion of Ukraine and US tariffs have added to costs and uncertainty.
Hestercombe
A historic Taunton 16th century house, estate and gardens has gone into administration.
Hestercombe Gardens Trust is the registered charity that oversees the restoration of the gardens and house set up in 1996.
The venue is a popular wedding venue and visitor attraction in the region. The estate continues to remain open and trading during this period.
A statement from Trustees said: “Despite the passion and commitment of the current management team and following a period of cost cutting and reorganisation, it’s sad to see such a popular and loved historic house and gardens left with no alternative but to appoint administrators to protect the assets.
“Visitor numbers are down over the past year and wedding/cafe operations are failing to deliver the profitability the wider estate requires.
“Like many businesses, Hestercombe has continued to suffer with increasing cost pressures to operate, leaving the Trustees with little option but to seek the protection of administration and the support of administrators.
“Hestercombe is a beloved historic estate and gardens and has played a central role in the cultural and social life of Somerset and beyond. However, the estate is no longer viable under its current operational model.
“The Trustees hope that the appointment of administrators will ensure a structured and professional approach to managing the Trust’s cash flows and assets while exploring potential avenues for future sustainability including restructuring and/or a sale of assets”.
Glassworks
A visual special effects (VFX) firm that worked on movies and big streaming shows such as Kaos on Netflix and The Rig on Amazon Prime has ceased trading and will be going into voluntary liquidation.
Glassworks was first founded in 1995 in London but expanded to open studios in Amsterdam and Barcelona. They were primarily focused on commercials but had a strong film and TV division but recently struggled in challenging market conditions.
In a statement issued by the company, it said: “The past 15 months have been a turbulent period in both the commercial and narrative spheres, with decreased opportunities exacerbated by the increased pressure of global competition.
“For a studio that has given so much to the world of visual artistry, to be forced to close its doors under such circumstances is truly heartbreaking. Glassworks wasn’t just a company; it was a vanguard of creativity. It fostered an environment where artistic boundaries were constantly pushed, and where the most complex visions were brought to breathtaking life. The name became synonymous with uncompromising quality, audacious innovation and a deeply personalised service.”
Simmons
A London cocktail bar chain with four sites has gone into administration and announced that at least four of their 20 sites will close with immediate effect.
Simmons founder Nick Campbell said: “As part of the administration process, we’ve taken the tough decision to exit four leases, allowing management to focus resources on our strongest performing venues.
“Alongside this, we’ve secured additional investment to support future expansion and operational investments across the estate.”
Kate Nicholls, chair of UK Hospitality said: “Sadly, the news of further hospitality closures and business failures is all too common at the moment.
“Our last survey showed that half of London hospitality businesses are operating at or below break even – up from a third since the (Autumn) Budget. That’s because the costs of doing business (rent, rates, employment) are much higher in the capital city but we have yet to see footfall and visitor numbers recover to pre-Covid levels.
“Put simply, the money coming through the front door is not enough to cover costs and as a result businesses are running out of road – they are being literally taxed out.”
There is still lots of time to make any changes you feel are needed to reach your goals in 2025.
Get in touch with us today and chat to one of our advisors about what options you have on the table – it’s usually more than you might realise.
The sooner you make contact, the sooner you can begin to make the rest of the year a memorable one for you and your business.