Business Debt Advice from KSA Group

Many businesses are doing well despite the recession but all the while they are being held back by an historic debt. The reasons for the debt may have passed and whatever caused the debt may have been rectified. However, the debt still makes its presence felt but making it hard to arrange new finance and generally draining cashflow.

KSA Group can help companies by using rescue techniques such as CVAs, pre-pack administrations, trading administrations. We can also negotiate on your behalf with HMRC to arrange time to pay VAT, PAYE and other taxes.

Have a look at our new page on business debt advice which highlights a number of reasons why businesses find themselves in debt and what can be done about it.

If debts mount up it is essential that you take advice from professionals rather than try and borrow more money.

Retail administrations in 38% rise in Q1

According to Wilkins Kennedy, the accountancy firm, the number of business that went into administration went up by to 670 in the 1st quarter of 2012 compared to 458 in the last quarter of 2011.  During this time the number of retailers that went in to administration rose by 38%.  Obviously the collapse of Clinton Cards is still fresh in peoples minds but is the high street really in such a bad way.

Looking at the statistics on a year by year basis the following picture emerges:
We have taken our figures direct from the Insolvency Service and the Office of National Statistics.  In the Q1 2011 the number of businesses that went into administration was 782 compared to 779 in Q1 of 2012.  So a fall then!  But yes, there was a big rise in retail administrations from 34 in Q1 2011 to 57. 

So all in all retail is having a tough time but overall the number of businesses falling into administration is not rising.  So which businesses are faring best?  Construction, Transport, restaurants, travel and especially manufacturing have all shown a fall in the number of businesses going into administration.  Manufacturing administrations fell by 36%!

All this is not surprising given our exports are doing well while consumer spending is falling.

HMRC lose case on football creditor rule

In a blow to HMRC, the High Court has ruled that the "football creditor rule" is not unlawful.  HMRC were trying to overturn the rule whereby the club, managers and players were paid in full in the event of insolvency whereas the other unsecured were often left with nothing.  This breached, in their view, the fundamental principle that unsecured creditors should be treated equally.   Read our pages for more information on the football creditors rule

HMRC have not yet decided if they want to appeal.  This case has been ongoing since last year and had to be delayed pending the outcomes of a couple of cases where the issue of treating creditors fairly was being looked at,  mainly in connection with the collapse of Lehman Brothers.

Is my pub or hotel insolvent?

KSA Group rescue pubs and hotels!

Higher taxes, squeezed spending and variable weather has put pressure on pubs and hotels in recent months. 

Why not read our  "Complete Expert's Guide to Turning Around Your Struggling Pub, Hotel or Inn Business." The guide is over a 100 pages long and provides invaluable advice on your options if your business is in difficulty.

You can download the new guide on our page on how to rescue a pub business.

The guide covers:

• Is my pub or hotel company insolvent?
• How can a pub get a time to pay deal with HMRC for PAYE and VAT?
• What is a Company Voluntary Arrangement and why is it a great rescue tool
• How to cut costs in your business
• How to deal with a winding up petition from HMRC.

And lots more

GDP figures revised downwards

The economy contracted by 0.3% instead of the 0.2% that the ONS originally said.  Many economists and analysts, including us at the time, said that this did not reflect the true state of the economy and that demand was holding up.  The evidence from the surveys which covered business confidence and purchasing statistics seemed to back up this view.  However, it was the very sharp contraction in the construction sector that has skewed the statistics and some have observed that demand has held up but stocks have been run down by firms in anticipation of weaker demand.

This latest news will mean that there will be further pressure on the Bank of England to restart QE and some on the committee will be mindful of the IMF's suggestion that interest rates could be cut further.

All this is also bad news the coalition as they try and  stimulate growth.

Canon to help Jessops - Is this the future?

Retail sales fell again in April by 3% but a large chunk of that was due to a fall in petrol sales.  The underlying fall was 1% so there are still problems on the high street.


However what is going on online?



According to reports over the weekend, Canon is expected to pump £10m into Jessops, the camera store with over 200 stores.  Jessops came close to administration a few years ago but was saved by its main lender HSBC in a debt for equity swap which saw it being taken off the stock market.  The firm is facing stiff competition from online retailers.  The company lost £12m on sales of £304m to January 2011.   It  is understood that Canon are keen to prop up the company as they value the shops presence on the high street as it allows shoppers to test and try their products before buying them online.   Surely other manufactures may take a similar line.  Clothes, Books, kitchenware....   Online sales purchasing is currently showing  year on year growth of 10%.  Of course the “ I need it now” impulse might keep this trend in check.



So will shops become just glorified frontages for online stores?  Electronics lend themselves to this sort of buying behaviour but it may only be a matter of time before shoppers will come home with no bags and await all their goods to be delivered at home!  Webvan anyone?

What happened to sensible Vince Cable

Well, he was a pro business social democrat. Wasn't he? Perhaps he is now moving more left wing than Stalin.

Conspicuous by his absence in any business debate, he looks to me like a "lifebelter" hold on til you get thrown overboard.

Any policy debate on employment reform, building business  incentive, state cost cutting, common sense is regarded by Vince, the sage, as "nonsense". Good commentary Vince.

Frankly, the next cabinet shuffle MUST include sacking Cable.