How to liquidate your restaurant in the UK
UK’s restaurant industry fosters economic growth and employs a large number of people, bringing local communities together and encouraging tourism in both rural and urban locations.
The sector, however, is facing major difficulties that threaten to make trading circumstances untenable for many business entities, cafes included. Insolvency remains a concern for UK restaurants, ranging from rising food and energy costs to personnel shortages.
Despite recuperating to some extent from the forced closures of lockdown, several firms, including many in Edinburgh, are still unable to make ends meet. So, what does insolvency and liquidation mean for the UK business sector?
Liquidation of bankrupt restaurants?
How to liquidate a UK Restaurant
Liquidation of bankrupt restaurants
Creditors’ Voluntary Liquidation (CVL) is a statutory procedure that guarantees firms close in accordance with insolvency laws, ensuring all processes are fully registered. Failure to do so can expose corporate directors to claims of malfeasance.
A licenced insolvency practitioner (IP) is appointed to oversee the proceedings and sell the company’s assets in a liquidation auction, including any remaining leases. The revenues earned are subsequently used to benefit the debtors, ensuring that assets, including any premises or leases, are handled by a licenced IP. CVL reduces the risk of improper trading claims while also allowing directors to receive statutory redundancy pay and potentially sell your business under licenced procedures.
Liquidation of solvent restaurants
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 company has earnings of £25,000 or greater to distribute, as funds taken are liable to Capital Gains Tax (CGT). This option should be considered if you are planning to sell your business. The operation is carried out by a licenced IP, who winds down the business’s affairs and shuts it by removing the company name from the official registry. This is a crucial step whether you plan to sell your business or cease operations entirely.
What types of issues affect the UK Restaurants Increasing operational costs
The rising cost of commodities like food and energy has made it difficult for many firms in the sector, pushing them to raise prices at a time when people are prioritising necessary things owing to the elevated cost of living.
Staff shortages
Staff shortages continue to hamper expansion as well as profitability in the bars and restaurants sector, forcing businesses to cut back on opening hours or lower their food and drink offerings.
What if you think your restaurant is facing financial difficulty but is solvent?
Company Voluntary Arrangements (CVA)
Company Voluntary Arrangements (CVAs) officially restructure a company’s debts under a legally binding arrangement with creditors and can be a confidential way to save your UK business.
Company administration
Entering company administration affords time to assess the business’s future without the possibility of a creditor terminating the bar, restaurant, or cafe lease.
McLaren Insolvency Practitioners specialise in supporting company directors in the bar and restaurant industry successfully shut down their businesses. We understand the difficulties and provide impartial sector expertise.
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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.
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.
Transform Challenges into Opportunities with McLaren Group.
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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.
Office: 250 West George Street, Glasgow, G2 4QY
Call 0141 459 0636
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ICO. Registration reference: ZB590513
Company Number: SC727432
Penny McCoull is licensed to take insolvency appointments in the United Kingdom for McLaren Insolvency Practitioners Ltd by the Institute of Chartered Accountants of Scotland.
Her Office Holder number is 9544.
© 2024 - McLaren Insolvency Practitioners | All rights reserved | Privacy Policy
ICO. Registration reference: ZB590513
Company Number: SC727432
Penny McCoull is licensed to take insolvency appointments in the United Kingdom for McLaren Insolvency Practitioners Ltd by the Institute of Chartered Accountants of Scotland. Her Office Holder number is 9544.
