Hailsham High Street in Sussex has seen a number of shop closures over the past year.
Tough trading conditions and high business rates are being cited as the reasons behind the closures.
C H Seymour Ltd – a long established domestic appliance retailer is one of the latest casualties.
C H Seymour Ltd have been in business on the high street for more than 20 years but were forced to call in liquidators on Friday 28th January 2011.
A spokesman for the appointed liquidators was quoted as saying “the directors have tried all possible avenues to find a buyer for C H Seymour Ltd. Unfortunately, they found that there was no other option but to place the company onto liquidation”
The retail sector has been severely hit during this recession, especially in rural areas.
While the circumstances surrounding the decision to place C H Seymour Ltd into creditors voluntary liquidation are not entirely clear, this is unfortunately all too common in this current climate.
High rent and rates are two of the main causes for businesses to suffer cashflow problems.
If a business is still viable and the director’s are aware of the company’s cash position, CVL is not the only option!
A company voluntary arrangement (CVA) can be proposed by the directors. A CVA is an extremely powerful tool available to a company. It can help terminate a lease, end staff contract’s and allow the directors to propose a restructure of the unsecured debts and a repayment plan over up to a 5 year period.
Once the directors have made the decision to propose a CVA, a small companies moratorium can be applied for through the courts which will prevent creditors from taking further action against the company while the CVA is being written.
This restructure, if agreed with 75% in value of the creditors, can allow the unsecured debts to be “crammed down” allowing a portion of the debt to be written off. This will enable the company to go forward without the burden of historical creditor pressure, re-negotiated terms with the landlord and business rates, and therefore refocusing the directors on driving the business past breakeven.
If you would like to know more about CVL and CVA or your business is suffering from cashflow problems, why not visit www.companyrescue.co.uk .
