Jeweller Case Study
The business operated from a kiosk, which was within a London shopping centre.It was run by a director who had skills in both jewellery design and manufacture and offered a range of unique items. The business was in part a hobby and not overly focused on earnings.
The director only took a minimum wage, while sales staff were paid at a basic rate, boosted by a commission structure. An accountant was engaged to manage all relevant company records on the financial side, including HMRC liabilities paid.
Despite this, the business was ineffectively run and the director fell into debt, struggling to make PAYE payments. A great deal of time was spent trying to work with the accountant to see if matters could be sorted out.
While the debts owed to creditors were relatively small, advice was sought by Company Debt and it was found to be unviable going forward and so was placed into liquidation.