In 1999 Christopher Layton set up Aftermath Limited - a retail outlet specialising in women's clothing based in Wigan. In its first few years of trading, things went well. The number of shoppers coming into the shop increased year on year, as did the turnover and profitability of the business. These good times continued until May 2003.
It was then that things started to go wrong. An ex-employee of the company decided to set up their own business, in direct competition with Aftermath. They approached the staff of Aftermath and managed to lure them away to go and work for them. The two companies then became embroiled in a highly competitive battle - all of which cost Aftermath a considerable sum of money.
Further troubles were in store the following Spring when a successful, well established market chain opened a shop in Wigan town centre. This was another direct competitor for Aftermath and the company found it increasingly difficult to compete with the low prices this other store was able to charge.
As if things weren't already difficult enough for Aftermath, in January 2005 it was forced to move premises because of a redevelopment programme which was taking place at its existing site. The move cost a considerable amount of money. Then, to make finances even tighter, the rent and rates at the new premises were higher than they were at the old one. While all this was happening, consumer spending on the high streets in general had taken a severe downward turn and was having an impact on the whole retail sector.
So with revenues down and costs up, the company found itself in severe financial difficulty. Drastic measures were needed if the business was to survive and so, in December, Mr Layton made a capital injection into the company. It was soon clear, however, that this measure was not enough to keep the company as a financially viable concern.
In April 2006, the director decided to cease trading. Mr Layton contacted his Accountant who directed him to Clarke Bell. It was immediately apparent to Clarke Bell that the company was insolvent and should be wound up for the benefit of all its creditors.
Christopher Layton said:
"The business was making a loss, sales were down and the bills kept coming in. By winding up the company, Clarke Bell was able to put an end to my worries. Now I can put this painful episode behind me and move on."
John Bell, senior partner at Clarke Bell, commented:
"The difficulties for Aftermath just became too much. Fortunately, Christopher came to see us and we were able to help him before his situation became even worse."....
