As 2023 comes to a close and 2024 comes firmly into view, it’s only natural to reflect on the previous 12 months and how they and their events have impacted your company.
You’ve spent so much time literally on your own business that you’ve probably missed some of the more interesting and important business and insolvency news stories – which is why we include them in our regular weekly round up.
So if you want to know why business insolvencies will be at a 14-year-high this year; what the past and future could hold for business energy prices and why you should consider a CVL during the Christmas break then you can find them all here and more.
Virgin Hotels Glasgow
The second Virgin brand hotel in the UK has closed just four months after opening.
Virgin Hotels Glasgow opened in August following the launch of their Edinburgh location in 2022.
The owners of the building, Lloyds Developments Ltd, went into administration on December 1st and had a management contract with Virgin Hotels. The hotel continued to trade but three weeks later V Hotel Glasgow Ltd, the operating company, announced it had insufficient funds to continue and would be placed into liquidation as a result.
A spokesperson said that Virgin had offered to buy the hotel and keep it open but “unfortunately, the lenders have not accepted Virgin’s offers and intend to pursue a sales process with the hotel closed. Virgin Hotels is very disappointed by this decision after the hard work everyone has put into the hotel and because of the impact it will have on the team that worked there.
“The Virgin Hotels team continues to have great ambitions for managing the hotel in Glasgow and looks forward to re-opening once a new owner is in place.”
A North Wales based developer has stopped trading and is being liquidated.
Brenig Construction was formed in 2012 and literally built its reputation on working with housing associations and private developments.
Recently it has been a challenging time in the sector with the pandemic, Ukraine invasion and Brexit all pushing up the prices of supplies and labours which eventually proved insurmountable for the company.
Bridger & Co
A Welsh law company that appealed the public advertisement of a winding up petition served against it has gone into administration with the loss of 14 positions.
A Litigation finance company – Specialist Lending Limited trading as Duologi – wanted to issue the petition against the company following a statutory demand for payment. Bridger’s directors argued that they had been induced to enter a funding agreement and that Duologi had agreed not to be “heavy handed”.
After hearing the evidence the judge declined to make an injunction against advertisement and a notice of a petition to wind up the firm was published the day after.
Highland Timber Construction
An Inverness based construction business is going into liquidation with the loss of 11 positions that have been made redundant.
Highland Timber Construction was petitioned in Inverness Sheriff Court for a winding up order
The firm was formed in 2016 and carried out construction of new buildings, extensions, renovations and kitchen remodels.
A statement from the directors said: “Unfortunately, the Covid-19 pandemic had a major impact on the company as it was unable to trade for some time which resulted in a loss of turnover.
“Recently it has not been able to secure a number of new contracts which has also impacted on turnover and has led to an inability to repay its creditors. We took advice and concluded that we had no other option but to cease trading.
Cube Precision Engineering
A West Midlands engineering firm has gone into liquidation with the loss of 45 positions.
Cube Precision Engineering Limited supplied services to the automotive, defence and aerospace industries.
The company had faced difficult trading conditions in recent months and while directors explored several options including selling the company and assets, no others were forthcoming so the decision was made to cease trading and close.
Administrators have been appointed at a Brough based business which first started trading 225 years ago.
Shipham Valves had been trading since 1798 but made the decision after “experiencing cash flow difficulties resulting from global supply chain issues.”
The directors statement went into more detail: “These cash flow difficulties have led the directors to take the difficult decision to place the company into administration.
“The company has a strong skill set in manufacturing, complimented by a longstanding world recognised brand name and continues to trade while a buyer for the business is sought.”
Unfortunately 39 of the company’s 71 employees have been made redundant as a result with the rest retained.
The business specialised in the manufacture of valves, serving global sectors including onshore and offshore oil and gas, petro chemical, power generation, marine, naval, fire protection and pipeline applications.
A major Scottish battery manufacturer has gone into administration.
AMTE Power is based in Oxfordshire but has a manufacturing plant in Thurso and was planning a half-gigafactory in Dundee to make batteries for car manufacturers.
The company had already warned that it was facing substantial financial troubles and needed urgent investment from shareholders and backers to continue trading.
A statement to the stock market said: “The board has no other options to secure finance in the time available and has therefore concluded that the company has insufficient funds to continue trading.”
AMTE had a long history of developing lithium cells and recently tested cells that can be fully charged in six minutes which would have been a breakthrough for charging technology.
A Lincolnshire based events hire company has gone into administration with the loss of seven positions.
Event Gear was based in Grantham from 2021 and provided equipment, technicians and production crews for a range of events including firework displays, conferences, concerts, exhibitions and weddings.
The directors sought to secure further investment to safeguard the business but were unsuccessful so could no longer continue operating.
Administrators have been appointed and a sale of the company’s stock and equipment will proceed through online auction.
You might not get everything you want this Christmas but you will probably get the most precious gift of all – time.
It’s critical that you use it as well as you can in the new year and there’s no better use than getting some professional and impartial guidance and advice about how you can start and continue in 2024 in the best position you can.
Get in touch with us to arrange a free initial consultation with one of our team of advisors today and they’ll be able to let you know what you can achieve, how you can do it and what you need to do to put your plans into action.