How to liquidate your bar in the UK

In the UK, the pub industry fosters economic growth and employs a large number of people, bringing local communities together and encouraging tourism in both rural and urban locations. However, rising outstanding debts are a growing concern. Sole traders and limited companies in this industry often need business rescue services.

The sector, however, is facing major difficulties that threaten to make trading circumstances untenable for many enterprises, particularly due to rising outstanding debts. Insolvency remains a constant danger to Scottish bars, ranging from rising food and energy costs to staff shortages and mounting outstanding debts. Both sole traders and limited companies are affected, and professional debt advice is often crucial. Contact us for free advice tailored to your financial situation.

Despite recovering at least partially from the imposed closures of lockdown, several firms are still struggling to make ends meet and face the risk of becoming insolvent due to outstanding debts. So, what does insolvency and liquidation mean for the limited company sector?

Ways to liquidate a UK Bar

Liquidation of insolvent or bankrupt UK bars

Creditors’ Voluntary Liquidation (CVL) is an official procedure that guarantees firms close in accordance with insolvency laws, providing protection for both shareholders and directors from further liability. Failure to do so can expose corporate directors to claims of malfeasance and personal liability, necessitating a thorough review of the financial situation.

A licensed insolvency practitioner (IP) or liquidator is appointed to oversee the proceedings and sell the limited company’s assets in a liquidation auction, often following a statutory demand. The revenues earned are subsequently used to benefit the debtors and shareholders, aiding the resolution of outstanding debts. CVL reduces the risk of improper trading claims while also allowing directors of a limited company to receive statutory redundancy pay in the event of compulsory liquidation.

Voluntary liquidation of solvent UK Bars

Another type of liquidation, known as Members’ Voluntary Liquidation (MVL), may be appropriate for closing solvent pubs and restaurants if the owner wishes to transition into a different business or is nearing retirement.

MVL may be a viable alternative if the limited company has earnings of £25,000 or more to distribute, as funds taken are liable to Capital Gains Tax (CGT) and can facilitate the liquidation process. The operation is carried out by a licensed IP or liquidator, who winds down the business’s affairs and shuts it by removing the business’s name from the Companies House registry.

What are the issues faced by UK bars?

Company Voluntary Arrangements (CVA)

Company Voluntary Arrangements (CVAs) legally restructure a company’s debts under a legally binding arrangement with creditors, forming part of the broader liquidation process.

Company administration

Entering company administration provides time to evaluate the business’s future without the prospect of a creditor closing the bar or restaurant, especially if a statutory demand has been issued.

McLaren Insolvency Practitioners specialise in assisting company directors in the bar and hospitality industry to properly shutter their businesses, whether they are sole traders or running a limited company. We understand the difficulties and provide impartial sector expertise and debt advice. Contact us for advice on managing your financial situation.

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Understanding and navigating IR35 regulations is crucial for contractors and businesses. We offer comprehensive guidance to ensure compliance, minimizing potential penalties and liabilities.

Winding Up Orders

Facing a winding-up order can be distressing. Our dedicated team will help you explore all available options, potentially saving your business and livelihood.

PREMIUM SERVICES

Our Services

Bounce Back Loans Assistance

If you're struggling with repayments or have questions about your Bounce Back Loan, we're here to help. Our experts will guide you through the process and explore options tailored to your specific circumstances.

VAT Debt Resolution

Unresolved VAT issues can be a significant burden. Our experienced team will work tirelessly to find the best solutions for your VAT-related challenges.

HMRC Debt Support

Dealing with HMRC debt demands can be daunting. Our experts will negotiate with HMRC on your behalf, helping you find manageable solutions and preventing further financial strain.

IR35 Compliance

Understanding and navigating IR35 regulations is crucial for contractors and businesses. We offer comprehensive guidance to ensure compliance, minimizing potential penalties and liabilities.

Winding Up Orders

Facing a winding-up order can be distressing. Our dedicated team will help you explore all available options, potentially saving your business and livelihood.

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Unlocking Financial Solutions for Businesses

HMRC Debt Assistance

HMRC debt can cause a significant strain on business finances. If ignored HMRC can often instigate winding up action. As a Director you should contact a licensed practitioner before this happens to ensure you are protected.

Bounce Back Loans Assistance

Navigating the complexities of government-backed loans, such as bounce back loans, can be overwhelming. Our experts are here to guide you through the process, helping you secure the financial assistance your business needs.

Why Choose McLaren Group?

Expertise

Our expert team offer director focused liquidation solutions. Helping with Bounce back loans, HMRC debts, supplier debts and much more. We understand the challenges many company directors have had since covid and provide tailored solutions to suit your situation.

Personalized Service

We believe in a client-centric approach. Every business is unique, and we tailor our services to meet your specific needs and goals.

Results-Driven Approach

We focus on delivering tangible results and will support you through the full process of closing your company. We offer a simplified director focused liquidation which will ensure your personal credit isn’t impacted.

Save Time and Resources

Our fully qualified team of Insolvency experts will help take the strain of creditor pressure away. Save you time & resources by contacting any creditors on your behalf and ensuring you get the right advice on closing your struggling company.

Transform Challenges into Opportunities with McLaren Group.

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Call us: 0141 459 0636

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Don’t let financial challenges hold you back from your business goals. Reach out to McLaren Insolvency Practitioners Glasgow today to discuss your specific needs and discover how our comprehensive services can help when you are struggling with business debts

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Embark on Your Financial Transformation Today

Don’t let financial challenges hold you back from your business goals. Reach out to McLaren Insolvency Practitioners Glasgow today to discuss your specific needs and discover how our comprehensive services can help when you are struggling with business debts.