Events Planning and Organising Company Closure and Rescue Options

In the events planning and organising sector, lots can change in a short time. The workflow may be intermittent, putting more pressure on a smaller number of events to perform well or turn a profit. Problems can arise both during an actual event, and in the organising and aftermath, leading to a potential loss in funds, and further financial problems. If your events planning and organising company is experiencing a shortfall or other financial difficulties, you should seek insolvency advice to explore its potential options for closure or recovery.

This guide is designed to help you navigate the complexities of insolvency, with practical advice specifically tailored for events planning and management companies. With the right knowledge, you can make informed decisions about the future of your company, whether it involves restructuring, refinancing, or winding down operations.

Common financial challenges for an events company

We can help advise on specific financial issues that may affect your events company. These could include, but are not limited to:

• Clients cutting spending
  Both the public and corporate clients tighten their budgets in times of economic uncertainty, which can mean less money to invest in events and lower takings from fewer attendees. If your events aren’t covering their running costs, or a lucrative client has reduced their number of events, it could lead to financial problems if left unchecked.
• Narrower profit margins
  Profits may be squeezed as costs, both fixed overheads (insurance, premises, salaries) and one-off expenses (venue hire, paying external contractors) increase. Speak to us if your company’s expenses are becoming unaffordable before they risk threatening its future. The sooner you act, the better your chances of achieving your preferred outcome for the company.
• Seasonal or intermittent work
  Events can be seasonal, and the revenue generated can fluctuate. This can lead to cash flow issues between those periods while overheads and fixed costs still need repaying. We can advise you which option would be best for your company if insufficient funds are being generated to cover its recurring or one-off expenses.
• Increase in regulation and compliance
  Existing licenses often need updating or reassessing to ensure continued compliance, while new ones may need to be applied for events to continue. Acquiring or reacquiring these can be costly on their own, and the company could be fined if they operate without these. We can help guide you towards the solution best for your company if it’s struggling to cover these costs.
• Bounce Back Loans (BBL)
  The government initiative of bounce back loans were very important during the pandemic. However, companies are now having trouble repaying them. We can give you advice on what options you have when it comes to repaying the loan and how a BBL would be treated in various insolvency options.

How we can help rescue your events planning company

Below are two formal insolvency procedures, which would allow your event planning company to continue trading whilst being protected from creditor action:

• Repaying company debts through a Company Voluntary Arrangement (CVA)
  A CVA is a formal repayment plan, which allows companies to repay their unsecured debts in instalments tailored to what the company can afford monthly. This would include managing property and lease negotiations and aiding in negotiations with landlords. It would allow an event planning and organising company to continue trading and to retain all its goodwill and reputation with customers, whilst being protected from legal action. CVAs typically last five years, and once concluded, any remaining unsecured debt is written off.
  More on a Company Voluntary Arrangement
• Restructuring the company through administration
  Administration is a temporary state for a company, that halts debt enforcement and creditor action, allowing your company to continue trading. We will act as administrator and try to restructure your company in order to rescue it as a going concern by turning your company into a leaner more profitable operation whilst also making it more appealing to potential buyers.
  More on administration

How we can help close and liquidate your events planning company

If your events planning and organising company is insolvent and creditor pressure has reached a level which means the business cannot continue to trade, the liquidation of your events company would draw a line under its operations and write off its unsecured debts.

• Closing your events company down via a Creditors Voluntary Liquidation (CVL)
  A CVL is a formal insolvency procedure designed for companies that are insolvent. The process would formally close and liquidate your company, drawing a line under your company’s debt, writing off its unsecured debt and giving you, the director, a chance to move on and start afresh.
  More on Creditors Voluntary Liquidation
• Close your company down and start again via a pre-pack liquidation
  A pre-pack liquidation is a form of CVL, where a newly formed company agrees to pre-purchase the assets of an existing company, which is then formally liquidated. This procedure would enable you to continue trading your business in a new limited company, retaining key assets, keeping your customer base and business relationships without the historical unsecured debts of your previous company.
  More on pre-pack liquidation

Commercial finance for events planning companies

If the company has an otherwise healthy cash flow, but a large, upcoming payment risks pushing it into the red, commercial finance could be a viable solution. There are a range of finance options potentially available that can help cover a one-off expense or a gap in the company’s incoming payments. Speak to us for a more detailed breakdown of which commercial finance options best fit your company.

How to get in touch with us: The next steps

If your events planning and organising company is facing insolvency, it’s important to understand the different closure and recovery options available. Our initial advisers will offer a comprehensive explanation of the different options available, and our experienced consultants will look at tailoring our processes to your event company’s circumstances.

Contact our initial advisers, who can advise you on your company’s solvent position and outline the options best suited to its circumstances.

1. Speak with our initial advisers
   Contact our team via phone or online chat. If we can help, we will arrange a free consultation with one of our consultants to discuss your situation in more depth.
2. Initial assessment
   During the consultation, we will advise if an insolvency procedure is the most appropriate route forward or what alternative options are available.
3. Formally engage with Wilson Field
   After your consultation, if there is an appropriate route forward, we will issue the relevant documentation for you to formally engage us.

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