How to Protect Customer Deposits Without New Legislation

Britain must have new legislation to ensure cash from deposits and voucher sales is returned to customers when a retailer goes into administration, according to the Institute of Chartered Accountants of Scotland (ICAS). The call follows the recent insolvencies of retailers such as music chain Zavvi and furniture supplier MFI where customers lost cash paid…

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Insolvency Practitioners’ Campaign against Energy Firms and Suppliers is Pointless

Britain’s leading professional association for insolvency and business recovery specialists has launched an astonishing attack on suppliers who raise prices or stop serving companies that have fallen into insolvent administration. According to R3, debt-chasing suppliers such as utility companies are responsible for 14% of liquidations and the rapid increase in pre-pack administrations, in which a…

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Sports Celebrities Snookered by Management Firm Liquidation

The liquidation of a management firm whose clients included sports stars such Ronnie O’Sullivan, Stephen Hendry and Olympic gold-winning cyclist Sir Chris Hoy is likely to set a lengthy court battle in motion. According to the Daily Mail, several of 110 Sport Management (110SM)‘s former clients are preparing to launch compensation claims for outstanding payments against…

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Corporate Insolvencies to Drop Following Appeal Court Ruling

A ruling by the Supreme Court in London could lead to a reduction in corporate insolvencies and stop creditors from chasing struggling businesses. Earlier this month, the Court of Appeal rejected a lawsuit by shareholders from British finance company Eurosail who claim the firm should be liquidated after buying £650m of UK mortgage-backed bonds from…

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Office of Fair Trading’s Insolvency Recommendations are Long Overdue

Last month, the Insolvency Service released a review paper on the regulation of insolvency practitioners (IPs) and asked the public for feedback. The consultation, which can be read here, follows an Office of Fair Trading (OFT) investigation into corporate insolvency and practitioner fees. The investigation found inconsistencies in the way complaints about IPs were handled…

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Top UK Director Sir Clive Thompson Facing Disqualification Proceedings

The Insolvency Service (IS) is to launch disqualification proceedings against one of Britain’s leading businessmen, Sir Clive Thompson, over his role in the failure of Christmas savings club Farepack, according to the Daily Mail newspaper. More than 116,000 people lost a total of £40m when Farepack collapsed in 2006 – after lending around £35m to…

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Premier League and HMRC Court Battle Set for 15 February

Next month, HMRC and the Football Association Premier League will battle in court over the taxman’s claim that the ‘football creditor rule’ is unlawful. Under the football creditor rule, when a club enters administration creditors such as players and managers are paid in full, whilst any remaining money is divided between unsecured creditors including HMRC. Football as…

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What’s More Important: Managing Debt or Bad Practice?

Last year, I advised a company that went bust owing £100,000. The Insolvency Service sought to have the company’s director disqualified, but he couldn’t understand why as his liabilities dwarfed the sums owed by other companies. I explained that he faced prosecution because of his conduct rather than the size of his debt. You may…

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Supermarkets Beating Pubs and Bars in the UK Alcohol War

Small and independent alcohol retailers should be concerned by a new study which found the number of failing bar and pub companies has risen by over 30 per cent. According to accountancy firm Wilkins Kennedy, 130 bar and pub companies went bust during the third quarter of 2010, compared with 99 during the same period…

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