Problem – The group of companies ran in to troubled waters as a result of a loss of contract. The subsidiary company was haemorrhaging funds and was being propped up by the holding company – save for the swift actions of the Directors and Seneca IP up to 50 jobs could have been lost.
Solution – The group engaged Seneca IP to close down the ailing subsidiary. Seneca met with the staff prior to the liquidation to explain the unfortunate position and allow them the opportunity to seek alternative employment. A meeting of creditors was called and the company entered in to liquidation shortly thereon afterwards with many of the staff being able to walk in to alternative employment with local competitors.
Result – The group had reduced its overheads by bringing all operations under one roof, could concentrate on the viable business and its customers were not affected by the process. The Liquidator was also successful in obtaining a tax refund from HMRC which will see a dividend paid to creditors thus mitigating their losses.
“We could not see any way in which we could save more than 75% of our workforce. We approached Seneca IP who assisted us in the process of Liquidation but also dealt with our staff empathically and in a most professional manner.”
Plastics form products – North of England – Creditors Voluntary Liquidation
Problem – The company had suffered as a result of progressively slowing sales and several substantial bad debts which led to them falling in to arrears with creditors. The Directors had supported the business throughout but made the decision at a key time to act.
Solution – The company contacted Seneca IP who quickly advised them to enter in to Administration with a view to maximising and preserving the value in the business and preserving employment in the local area. The company was actively marketed throughout the UK and eventually sold back to a restructured form of the previous board. The brand name of the company was preserved along with the company’s employees.
Outcome – the company continues to trade to date and continues to employ staff in what is considered an employment blackspot. The company had faced the hostile appointment of an Administrator by their financier which would have entailed a shutdown of the business resulting in a loss of jobs and cost to both the local economy and National Insurance Fund. The fact that the board acted as they did and that Seneca IP were on hand to guide the business through the process and bring the financier on board was the key factor in preserving what had been built up whilst still delivering the best possible return to creditors.
“We could not trust the advice we had received elsewhere and were introduced to Seneca IP. Within minutes of meeting with Mr Hedger we were satisfied that we were in capable, professional hands. The entire team at Seneca saw us through what was admittedly a very tough time, their knowledge and professionalism was second to none and I do not hesitate to recommend them to anyone who finds themselves in the unenviable position we did.”
Gymnasium Equipment Manufacturer – Northern Ireland – Administration