Textile company goes into voluntary liquidation
A Clarke Bell Corporate Case Study
The UK textile industry has been hit hard in recent years, with a number of companies forced out of business due to financial pressures caused by difficult trading conditions. However, one Mansfield-based company is facing a promising future as a result of legal and financial arrangements organised by Manchester Chartered Accountants and Insolvency Practitioners Clarke Bell.
In common with many UK designers and manufacturers, Lorien Textiles' business became unviable due to the cumulative effects of the strength of the pound, cost pressures and demands for ever keener prices on the High Street. This eventually resulted in the business being taken into voluntary liquidation.
Fortunately, Lorien turned to Clarke Bell for help and, as a result, a new company trading as Lorien Lingerie and Lorien Nightware was formed, with products now being sourced from Lithuania and China.
The new company has re-employed a number of design and packaging staff, and is back in business supplying among others well-known High Street retailers such as Mackays, New Look and Etam.
"The advice and guidance we received from Clarke Bell was invaluable in making these arrangements," said Lorien's Managing Director Peter Robinson.
"Unlike some other declining industries, we were largely on our own when our problems worsened, so it was a great help to find professional support and expertise when we needed it most.
Clarke Bell were very positive all through and helped us make the best of the situation."
"Sometimes Business liquidation is the best option for a company in difficulties," commented John Bell, Clarke Bell Senior Partner.
"But it's important for company owners and directors to realise that business assets, expertise and order books can often be saved through the formation of a new company. With the right entrepreneurial skills and good professional advice, businesses like Lorien can become successful again."
"Clarke Bell were very positive all through and helped us make the best of the situation."
