Running a pub is notoriously difficult – which is why as many as 16 pubs are closing down each week due to financial difficulties.
Clarke Bell help pub owners to deal with their company’s cashflow problems. We can help you sort out your company’s debts, while ensuring that you fulfil all your legal duties.
In many cases, we also help the company director to successfully start up a new business.
Problems for pub owners
The typical problems pub owners face are:
- tough competition from other pubs and restaurants
- people increasingly drinking at home rather than going out
- considerable investments needed for (or already spent on) refurbishments of the pub
- money required for marketing to generate more customers
- increasing costs of staff and suppliers
- mounting bills ~ especially rates and tax.
Each of these problems can take its toll on the profitability of a pub, as well as the well-being of its owner.
If your company is having cashflow problems, you should to speak to your Accountant and/or a specialist in dealing with these situations (such as Clarke Bell).
The best solution available to you
Clarke Bell are Licensed Insolvency Practitioners. We have a wealth of experience in dealing with pubs that have run into financial difficulties and helping to find the best solution for all the parties involved.
If you’re in this situation, there are different options for you to take. We will work with you (and your Accountant, if applicable) to find the best option for you.
Creditors’ Voluntary Liquidation
A popular solution is the process called a Creditors’ Voluntary Liquidation (CVL). With a CVL, we work with the owners of the pub to close the company down by putting it into liquidation. By being pro-active, you are more in control of the process ~ as opposed to waiting for a creditor to take action against you. The action they could take includes a CCJ, winding-up order or hiring a debt-collector.
As an Insolvency Practitioner, it is our legal duty to act on behalf of the creditors of the company (i.e. the people who are owed money). Within the CVL process, we will work with you to ensure that the limited company is closed down properly and all the directors’ legal duties are fulfilled. This means that you can move on and have a fresh start.
Most of our clients tell us that they are relieved to have finally addressed their problems and that they wish they had come to see us much sooner.
How much does a CVL cost?
Most of the pubs we deal with fit the criteria of our ‘Basic CVL’ service – which costs £1,995 (including VAT).
For complex cases, the cost is on a case-by-case basis.
Thanks to our expertise and efficient systems and processes, we can provide you with an affordable solution to a seemingly insurmountable problem.
As we are licensed by the ICAEW, you can be assured that the whole matter will be dealt with professionally and in accordance with all the relevant legislation.
Starting up again
Having liquidated their pub, some of our clients retire or get a job…often in something in a very different field.
However, many others want to re-start their business, having learnt from their previous experiences (and mistakes). We can help with this too.
Normally the pub’s lease with the brewery is in the pub owner’s individual name, rather than the limited company’s name. Typically, the brewery will have a charge over the fixtures and fittings of the pub. These factors help with the continuity of the business when the owner (with the help of their Accountant) sets up a new company with which to run the pub.
The ‘new pub’ can then provide employment, business for suppliers and play an important part in the community.
If you would like to discuss how we can help you to deal with your pub’s cashflow problems, give us a call on 0161 907 4044 or email [email protected]