Fundraisers hits £65,000 to save Edinburgh city farm in liquidation
Gorgie City Farm is a community farm that has been operating for over 40 years in Edinburgh. It houses over 100 domestic and farm animals, welcomes children and visitors and allows volunteers to gain valuable hands-on experience of working on a farm within the city limits.
Last week the board of directors decided that in the face of a tough funding environment that the farm would be wound up and all 23 staff made redundant.
Shona Campbell of MHA Henderson Loggie, handling the administration, said: “It is always difficult when people lose their jobs through no fault of their own and we will now undertake to act as efficiently and sensitively as possible to provide support in matters concerning staff and volunteers.”
Now, any liquidator has a tough enough job. They have to balance the interests of the creditors and look to find a buyer for the business if at all possible, and if not, raise as many funds as they can for distribution by selling assets.
Marketing stock, fixtures and fittings is one thing but what if the assets of a business are actually alive and need care? What happens to them? Do they have to be moved into your office until you can find a home for them?
Thankfully, no. Our Insolvency Director Chris Horner explains: “If you’re working on the liquidation of a farm or say a tropical fish shop then livestock are classed as actual assets and have to be accounted for. This doesn’t mean you have to look after them yourself!
“An insolvency practitioner will take steps to make sure that any livestock or animals would be found appropriate homes and care during the liquidation process and new permanent homes are found for them with new owners.”
Former members of staff at Gorgie City Farm have set up a Go Fund Me page to raise money to help save the farm and have currently raised over £65,000. Even if they don’t manage to raise enough to keep the farm as a going concern, hopefully they will find homes for the domestic animals at the farm not included in the sale process.
Managing livestock is just one of the unexpected problems qualified insolvency practitioners might be called on to solve any day of the week.
We are contacted by companies at each and every stage of administration from those that are seeing early warning signs in their finances and need some advice to those that have been served with a winding up order and are due to appear in court.
Prevention is always better than cure so if you can feel the winds of fortune changing for your business then get in touch.
A free initial consultation with one of our team of expert advisors will give you a roadmap to improvement or recovery and we can work with you on every stage you need us.