Insolvency & Rescue Solutions for the Automotive Sector
The UK automotive sector finds itself in a uniquely challenging period. Brexit, debt burdens, and the massive slump in demand caused by COVID-19 are adding pressure to balance sheets throughout the industry.
A revolution is underway in terms of the vehicles of the future, with the death knell sounded for the internal combustion engine – sales of new vehicles will be phased out by 2030, with electric cars set to become increasingly mainstream.
Dealerships can be traditional showroom-based businesses, including both listed ventures with multiple outlets to small independents. But, buyers have been put off visiting and the standard test drive format. Recent years have also seen the rise of online players, looking to build their brands through extensive advertising and to change the way people buy cars, with delivery to the home.
Here at Company Debt, we have significant experience in both closing and restructuring automative sector businesses. Get in touch for a free, no obligation discussion about your situation with one of our licensed insolvency practitioners.
Automotive Pressure Points
Insolvency Options for Automative Sector Businesses
At the point of insolvency, you must seek professional help immediately as continuing to trade, while knowingly unable to pay your bills or creditors, could leave you liable for charges of directorial misconduct.
Taking sound professional advice will allow you to see the the options before you. We can help you understand whether the business can be rescued, via a structured payment plan with creditors (CVA), a process such as adminstration, or whether it should be liquidated and closed down. Raising finance may also be a possibility, as is selling the business.
If you choose voluntary liquidation, one of our insolvency practitioners can take care of the whole process on your behalf. From dealing with corporate creditors and making employees redundant, to selling assets, the IP handles the process entirely, while your powers are director cease.
Many directors don’t realise they may be eligible for redundancy payments when closing an insolvent business. Assuming you’ve worked for your automative business for at least 16 hours per week over a two year period, and are registered for PAYE, it is more than likely you’ll have a redundancy claim. We will apply for this on your behalf, as part of the liquidation process.
Knowledge – Insight – Solutions
We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.
Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.
We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.
As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.
Book My Consultation
If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.
- Your free consultation will be led by one of our experienced London insolvency practitioners
- You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
- The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
- We specialise in helping limited comany directors needing immediate professional debt advice