Your handy news round up from June 16 to 22nd
Summer is here as anybody working in a hot office or premises can testify and while you might be rushed off your feet, especially if you’re a seasonal business – you will still have quieter moments.
Why not use that time to catch up on all the interesting and important business and insolvency news stories from the previous seven days?
If you want to know how printing companies are handling the current economic uncertainty, why the latest monthly corporate insolvency figures are at their highest levels for over four years and why the CVA is making a comeback – read them all here!
The ground breaking all-female racing event – the W series – has entered administration with all remaining employees being made redundant.
Formed in 2018, the racing series took place at Formula One circuits to give its entrants a higher platform but after two successful seasons the 2020 campaign was cancelled due to the pandemic.
It was due to have four support races during Formula One weekends in 2022 but funding did not appear so only one race – in Singapore – was staged. While there was some hope that the series could be revived in 2023, this was ultimately fruitless and administrators were appointed.
Jamie Chadwick won all three seasons and has moved to the Indy NXT series in America.
F1 has now launched its own female-only series for 2023, the F1 Academy managed by Susie Wollf, which it is hoped will expand in 2024.
It’s being widely reported that discount chain Wilko will launch a CVA in the next few weeks to help restructure the business.
The business currently has 400 UK stores and is looking to reduce the rent on more than half of them which it could do under any agreement with its landlords.
An alternative strategy would be to close some loss making outlets but they hope to avoid this although landlords would be eligible to take back their properties.
Retail analysts say that the CVA would be a necessary strategy for them to pursue as administration could be the only alternative if rejected.
Despite being purchased in a prepack deal earlier this month, the renowned Hunter Boot Limited company has gone into administration.
The 160-year-old business was purchased by the Authentic Brands Group which also owns Ted Baker and Juicy Couture earlier this month but cited “a decline due to a combination of reduced demand, the pandemic, supply chain disruption and inflationary pressures”.
A statement posted on social media by the business announced to customers that the business was in a “brief transition period” and they would be working as quickly as they could to restore regular operations.
A Nottinghamshire based engineering firm has announced a notice of intention (NOI) to appoint administrators.
Sutton-In-Ashfield based Lindhurst Engineering was formed in 1985 to provide fabrication services to the local coal mining industry but subsequently diversified to provide work in utilities, food and drink, transport and construction sectors.
The business employs 35 workers whose positions are now at risk of redundancy.
The Walsall based supplier of specialist access equipment for the construction industry has gone into administration with the loss of 40 positions.
Adastra Access was one of the UK’s largest and well-known suppliers of specialist access equipment including mast climbing work platforms and suspended cables to commercial and residential clients as well as those working on the construction of maritime transport.
The company had a strong order book but had recently faced significant operational, health & safety and financial challenges which resulted in trading losses and significant cash flow pressures.
Despite recent investment from shareholders and work from the directors the financial position of the company deteriorated so the business was no longer considered viable.
A statement issued on behalf of the business said: “The collapse of Adastra Access Limited is another indicator of the challenges and economic headwinds currently facing the Scottish and UK construction sector and in particular, subcontractors.
“The directors fought hard to save this business but it was ultimately impossible to mitigate the impacts of labour shortages, rising costs and delays to customer projects.”
A modular housing manufacturer in Knaresborough has filed a notice of intention (NOI) to appoint an administrator as the company continues to search for a buyer. Their nearly 1,000 employees have been sent home from work on full pay until a decision is reached.
The company, established in 2017, ran into financial difficulties that it attributes to “volatile macroeconomic conditions and issues with the planning system which have complicated fundraising and housing delivery”.
If no buyer is forthcoming in the coming days then the business will enter administration.
The company which was due to manage a nationwide recycling scheme in Scotland has gone into administration after retailers and producers withdrew financial support as a result of delays to the deposit return scheme (DRS) which was critical.
Circularity Scotland has found itself at the centre of a political row as Scottish first minister Humza Yousaf accused the UK government of setting too strict conditions on the implementation of the DRS saying “the collapse of Circularity Scotland lies solely and squarely with UK government ministers.”
A statement from Circularity Scotland said: “The ongoing uncertainty surrounding the future launch of the DRS prompted the company’s backers to withdraw future funding, and as such, the directors were left with few options other than to seek the appointment of administrators.”
DRS is currently in a state of hibernation until the planned UK roll out in 2025 particularly as the UK government has yet to publish the finalised regulations.
Scottish economy minister Lorna Slater said it had been impossible for Circularity Scotland to agree a business plan as there was no indication what the DRS deposit would be, the level of fees to producers or the return handling fees.
The UK government had granted an exclusion for Scotland’s DRS to go ahead under internal market rules on the basis of it excluding glass and setting the deposit level at the yet to be determined national level.
Whether the summer is quieter for your company or the busiest 12 weeks of the year that will make or break it for your business – it can be the perfect time to start planning what the rest of the year and beyond will look like
Depending on your goals, our expert advisors will look at where your company is now and what choices you have available to you.
The most important step is the first one so make your appointment today.