Sound advice saves jobs
Advice from Moorhead Savage has helped to save around 50 jobs in the Sheffield City Region in the first quarter of 2011. Three companies working in hospitality, construction and manufacturing, approached us at the start of the New Year convinced that they were facing bankruptcy and closure. But we were able to explain to them that steps could be taken that would save them from closure and their workforce for unemployment. Last year Government figures suggested there were fewer smaller businesses going into liquidation but we knew than many were hanging on and hoping for good things at the start of 2011.When the better times failed to materialise, these companies approached us, fearing they were on the brink of closure, with a future that looked simply too bleak. But in all three cases, the business owners didn’t have any awareness of the options that were available to help turn their businesses around. The answer in all three cases was a Company Voluntary Arrangement (CVA), an insolvency procedure that allows a financially troubled company to reach a binding agreement with its creditors about payment of all, or part of, its debts over an agreed period of time. It was good to be able to explain to all three companies that there are ways of keep a business going with the support of creditors. A CVA can be the key to giving the best possible outcome for everybody involved because it is nearly always in the best interest of everybody, including creditors, if a business can continue to operate. If a company were simply to go down, the assets would probably not pay the creditors or make an meaningful impact on the debt. Even more importantly, by helping these companies to enter into CVAs, we were able to help safeguard 50 jobs which, in a climate like this, has to be the best news of all. For advice on all financial problems call the team at Moorhead Savage on 01709 331 300.