The Evolving Role of Insolvency Practitioners
The Role of Insolvency Practitioners Today is More About Saving Insolvent Businesses
Those outside the industry tend to view Insolvency Practitioners as the last resort. Tidying up and liquidating insolvent companies. That role has been quietly changing for a long time. Inevitably that element still exists when there is no alternative and all other options have been tried. However, our role now is more about saving insolvent businesses, or as much of them as can be saved, rather simply going through the process of liquidation.
Inevitably the sooner we are called in the better, but helping businesses with their problems so that they can restructure and turn their fortunes around is now a major focus of insolvency practitioners.
Our Focus is Now About Implementing Solutions, Quickly, to Address Business Problems
In other words, IPs don’t just implement formal insolvency procedures (as required by our regulators and the professional bodies); now, more than ever it’s also about business as well as financial understanding so that the right solutions can be developed and implemented quickly enough for the maximum benefit of all parties. If the new insolvency rules – which at their heart are about creating a framework for allowing faster processes – can help us to continue to move more quickly, then so much the better.
As Insolvency Practitioners We’ve Been at the Forefront of this new style Insolvency Work for Some Time Now
So what do we mean by all this? A case study of ours that goes back a few years helps to explain things and also demonstrate our approach. Click here to see more detail of our Administration of the well known High Street Clothing chain Viyella.
In summary, however, with Viyella, we were presented with a difficult and fast moving situation which required a quick and decisive response from us: good business sense as well as knowledge and experience of the sector. It wasn’t just about applying the insolvency rules; it was about trying to save the business. The outcome at the time was positive with 21 of the 40 stores and 16 of the 64 concessions being sold off as going concerns, saving jobs and livelihoods.
Contact us for Help and Advice if Your Business is Facing Insolvency
Sometimes, there is only one solution when a business is failing and is insolvent. That is a dignified and orderly liquidation. More often than not, however, we find that by listening to the problems and talking to stakeholders and other important parties – bankers, HMRC and major suppliers for example – we can often come up with a plan, and get support for it quickly, that avoids liquidation.
Inevitably there will be changes and delicate negotiations and nothing is guaranteed. But just as the New Insolvency Rules are designed to speed the whole process up, the sooner we are instructed, the more we can do to help.
Not all Insolvency Practitioners have the experience or expertise to work in this way. Contact us our team of Business Recovery Specialists or call us on 0121 200 2962 for an initial discussion if your business is facing insolvency.
