We met with the owner after the bank started returning cheques. Despite promises from various sources, no new monies had been introduced. They reluctantly asked for our help. Today the owner is still trading, using the same name, is able to get credit under the same business and has no regrets as regards asking Sherwood, Taylor & Whyte to come into his business.
This company owed the PAYE £185,000 and the VAT £62,000. Any normal route would involve locking the doors and calling in the receivers. In truth they tried to do just that but could not afford the fees! Through a business colleague we met with the owner and formulated a plan of action. In order to continue trading we sat down with the preferential creditors. This case was not an easy one for either party but the company is still active today. The turnover is still present and month by month the preferential creditors are being dealt with. No CVA action was requested or required.