The threat of insolvency is one of the main concerns for business owners, despite the news that we are now officially out of the recession.
In a web poll conducted on the Stephensons website, www.stephensons.co.uk, business owners voted for their number one concern for 2010. Almost a quarter (23 per cent) said the threat of insolvency was the main issue keeping them awake at night, while 34 per cent said their top concern was bad debts, often seen as a pre-cursor to insolvency. Employment issues, in particular redundancy, worried 29 per cent of respondents while gaining access to lending concerned 14 per cent.
Jonathan Chadwick, Partner and Head of Commercial at Stephensons, said: “The official exit from recession has given business owners one reason to be cheerful this week, however our web poll suggests that UK PLC is still not out of the woods just yet.”
Recent findings from insolvency body, R3, also warn that the next few months could be the most dangerous for businesses, with more than 26,000 corporate insolvencies predicted and March expected to be the worst month.
Jonathan adds: “Companies with the healthiest of balance sheets can be caught off guard by the loss of a key client, yet even when the threat of insolvency is high, business owners often fail to take control of the problem by speaking to a corporate recovery professional at an early stage.
“There is a cloud of confusion over what the insolvency process actually involves, which can encourage business owners to leave it too late before contacting an Insolvency Practitioner for advice. Business owners can have concerns about the consequences of doing so, but in many cases the company can be turned around without the need to enter into formal insolvency.
“Ultimately, saving the business and in turn protecting the livelihood of those who work there is the number one concern for Insolvency Practitioners.”
Stephensons has a dedicated corporate recovery and insolvency team which assists businesses who are struggling with finances and survival. The team acts for Insolvency Practitioners in the Northwest and nationally in their cases, providing advice and assistance in representing them in Court through the insolvency process.
The firm also act for owners of businesses who experience insolvency issues, the key objective being to help them survive and recover.
ENDS
About Stephensons
The latest edition of Legal 500 ranks Stephensons as a top 60 UK law firm and the fifth largest legal practice in the North West, and recommends Stephensons’ commercial teams. The firm has 26 partners and around 350 staff in five locations across Merseyside and Greater Manchester.
Media information: Lianne Tracey
Stephensons Solicitors LLP
T: 01616 966 229