Companies that provide cleaning services often faced hardship during the pandemic, with work stopping and an uncertain future remains. They are required less in offices as these have either not reopened or have minimal occupancy – although with shopping centres and entertainment venues opening again, this will have led to more employment.  

Here at Company Debt, we have significant experience in both closing and restructuring charities and non profit businesses. Get in touch for a free, no obligation discussion about your situation with one of our licensed insolvency practitioners.

Cleaning Sector Pressure Points

Loss of Contracts
Staff shortages and minimum wage increase
Tendering

What are the Reasons for Cleaning Contractor Insolvency?

The sector has seen numerous failures and there may also be increased tendering pressures, as businesses look to cut costs. Cleaning firms can also be particularly vulnerable if they are reliant on a major contract – if they lose this, then their business becomes unviable.

There is also a shortage of workers and wage bills are rising – it was reported that a hotel was even offering a discount to guests who agreed to clean their own rooms.

However, there may also be opportunities. Cleaning firms that use intensive techniques to clean offices may be able to show they are reducing risk of infection and making the workplace safer. There is also a move towards sustainable practices so contractors that can show they are taking more environmental responsibility could find this works in their favour.

Directors and trustees of charities should seek appropriate expert advice as early as possible during a potential insolvency.

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

 

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