As storm Babet blows into the country, she might also be blowing away any last hopes for an easy run into the end of the year for directors and business owners.
Inflation remains stubborn and steady and stormy conditions, as well as causing actual damage to businesses, will also depress vital weekend footfall.
So if you find yourself with some more time on your hands this weekend, you can use it to catch up on all the important business and insolvency news stories from the past seven days right here.
So whether you want to know what a business should do if it receives an unexpected winding up petition (WUP); what September’s official corporate insolvency statistics tell us and everything you wanted to know about CVLs but didn’t ask – you can find them here and more!
Hundreds of positions in the midlands are under threat following news that Volta Trucks parent company is filing for bankruptcy in its native Sweden and administration in the UK.
The company has most of its business and engineering operations in the UK employing 600 staff at hubs in Coventry, Nuneaton, Leamington Spa and Reading.
In a statement issued by the Board, the company confirmed the move with deep and sincere regret. It said: “the Board has not taken this course easily or lightly and is fully aware of the significant impact this will have on the organisations workforce, customers and partners.”
The company’s battery supplier Proterra filed for bankruptcy earlier this year which the board confirmed had a “significant impact on our manufacturing plans, reducing the volume of vehicles that we had forecast to produce”. Also “the uncertainty with our battery supplier also negatively affected our ability to raise sufficient capital in an already challenging capital raising environment for electric vehicle players”.
One of the UK’s leading “virtual” restaurant firms which operates so-called “dark” kitchens for delivery brands has gone into administration.
KBox was founded in 2019 and used data to allow other restaurants, hotels and pubs to use their kitchen capacity to supply delivery customers. It formed a network of thousands of kitchens in London, Manchester, Liverpool, Edinburgh, Glasgow and Brighton with international franchise agreements with franchisees in India and Australia.
A statement from the business said it had experienced trading difficulties which led to pressure on its liquidity and how it was a challenging time for many dark kitchen operators as cost inflation was severely impacting their margins.
“After exploring a number of options, including the possibility of a sale of the business, it became clear that a solvent solution was not available, and as such, the directors took steps to seek the appointment of administrators.”
18 employees have been made redundant with immediate effect.
North East Art Collective
A Newcastle gallery which looked to champion local talent has gone into liquidation after falling into financial difficulties.
The North East Art Collective operated within the Eldon Garden shopping centre after 13 years of trading, showcasing work by hundreds of North East artists.
A statement from the company said: “We have traded from Eldon Garden Mall for a number of years but this shopping space has suffered decline in recent times.
“With restricted footfall and a combination of the cost of living crisis and a change in consumers’ discretionary spending, the business was losing money and needed funding support.
“Despite opening a pop-up site in the Metrocentre in Gateshead, this proved unprofitable too so after considering all options the decision was made that as directors could no longer support the business, they should cease trading immediately.”
A training provider that has been offering adult education services, apprenticeships and study programmes for young people since 1973 has announced it is going into liquidation.
Key Training Ltd was rated as good by Ofsted in its latest inspection but was unable to renew borrowing facilities with its bank leaving it unable to repay debts as they fell due.
Operating mainly in the North East, they had previously held contracts with the North of Tyne Combined Authority but missed out on devolved and non-devolved adult education budget contracts in recent procurements meaning the closure will go ahead with the loss of 70 positions,
Andrew Dunsire, chair of Key Training Ltd said they had lined up a new buyer but despite strong initial interest and considerable due diligence, the buyer withdrew.
He assured stakeholders that they had tried all avenues to continue trading but didn’t want to let any creditors down.
A Leicestershire-based noise control business operating since the 1890s has been purchased out of administration.
Hodgson Acoustics went into administration last month as a result of capacity and efficiency issues which caused delays to ongoing orders which subsequently led to the business experiencing severe cashflow problems.
The business was purchased by Wiltech Acoustics which provides critical power, maintenance and hire services for large organisations such as data centres and hospitals.
Hodgson Acoustics specialised in the design, manufacture and installation of acoustic canopies. The acquisition gives Wiltech full control over the manufacturing process and expands their offering of bespoke acoustic solutions for businesses.
A statement from the business on the sale said: “We’re pleased the sale has resulted in the continued employment of all staff and minimised disruption to key customers of the business.
“We’re confident that the transaction has secured the best possible outcome for creditors given the circumstances and wish the purchaser all the best as they take the company forward.”
Parkers Bakery based in Hartlepool has gone into administration and ceased trading with immediate effect.
Initially formed in 1959 as G Waugh, it changed its name in the 1980s to Parkers Uppercrust Bakeries when it moved to the Parkview industrial estate.
The business supplied a variety of breads, cakes and confectionary across Hartlepool and the wider North East.
A 53-year-old structural steelwork specialist has announced it will be going into administration.
James Killelea was founded in Lancashire in 1970 and employs 92 people providing structural engineering services including 3D building design, fabrication and erection.
One of their most recent high profile projects was the new Luton Airport carpark which was in the headlines last week after a fire.
Killela worked closely with the main contractor Buckingham Group which also recently went into liquidation which may have materially affected their future prospects.
Mark Stewart International Transport
A humberside based haulage company has appointed administrators.
Mark Stewart Limited trading as International Transport was founded in 2009 and employed 25 staff operating 53 trucks and 23 trailers.
The business handled trailer and container movements to and from Humberside ports as well as offering transport and haulage services across the UK, Europe and Scandinavia.
Due to a reduction in revenues amidst challenging trading conditions, the company faced cash flow difficulties, which impacted its ability to operate.
A statement from the business said: “Unfortunately, like many other businesses in the industry, Mark Stewart was not immune to a significant fall in demand across logistics. The sustained fall in revenues had made the business financially unviable as it was unable to meet its financial obligations.”
An innovative Scottish fashion reseller has gone into liquidation following a financial crisis.
Overhype based in Aberdeen specialised in reselling rare trainers and branded clothes such as Burberry, Stone Island and Moncler.
James Rattray, founder and director reviewed the company’s financial position and confirmed the business was insolvent so moved swiftly to initiate a creditors voluntary liquidation.
He said: “The decision was made with the aim of optimising our operations and enhancing the shopping experience of our customers online.
“This shift allows us to put a stronger emphasis on our online presence, adapting to the evolving retail landscape post-Covid.”
We’re now in the final, critical, quarter of the year and keeping everything crossed that customers respond and contribute to a great buying season.
But no matter how the rest of October, November and December plays out for your business – you can make some positive changes starting right now.
Get in touch with us to arrange a free consultation with one of our team of advisors for a convenient time.
They’ll be able to explain all the options available to help strengthen and support your business and how you can quickly and efficiently implement them.
The sooner you get in touch, the sooner they can begin to take effect!