Problems in the UK manufacturing and processing industries continue to result in casualties among small and medium sized undertakings.
However, the worst financial consequences for their owners can often be avoided when the best professional help is sought. This happened in the case of Aries Metal Treatments, established for 15 years in Ashton-under-Lyne in Tameside as a company specializing in shot-blasting and paint-spraying of heavy metal objects.
Due to intense competition from abroad, with UK companies choosing to send materials as far as Africa to receive an equivalent service at a much lower cost, Aries' competitive position became seriously undermined. In consequence, financial losses accumulated and it became impossible to continue the business. It was at this point that the owners called in Manchester Chartered Accountants and Insolvency Practitioners Clarke Bell.
With pressure from creditors building up, the owners were extremely concerned about individual liabilities arising from personal guarantees to a debt factoring company. If a creditors' liquidation had been enforced, there was a strong likelihood of an unsatisfactory recovery from book debts. However, following advice and action instigated by Clarke Bell, the business was placed into administration. As a result, virtually all book debts were recovered and financial disaster for the owners was avoided.
"We were just like a ship being tossed in stormy seas until Clarke Bell arrived," said Aries director George Haslam, "but they put a firm hand on the tiller and guided us to safer waters. They gave me a renewed sense of security, and brought about the best possible outcome from a very difficult situation."
There was also good news for some Aries employees who are expected to regain employment with the company which has bought part of Aries' assets.
"Prompt action is the key in dealing with situations such as Aries Metal," added John Bell, Senior Partner at Clarke Bell.
"We can usually act to realize the maximum value from business assets and protect directors' personal situations, provided we are called in early enough. Fortunately the directors of Aries Metals did this and we were able to achieve a satisfactory solution for them."....
