Golf Course Company Closure and Rescue Options
Operating a golf course and maintaining it to a high enough standard to keep loyal golfers and attract new ones can be costly and challenging. On top of seasonal trade, golf courses are susceptible to damage from the weather, and customers demand increasingly unique experiences. Failing to keep up can lead to a decline in customers, putting your golf course under further financial strain.
This guide is designed to help you navigate the complexities of insolvency, offering practical advice tailored to golf courses. 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 golf courses
We can help advise on specific financial issues that a golf course can face, including but not limited to:
- Declining visitors and members
Playing golf regularly can be an expensive hobby. With such a high barrier to entry, you could struggle to attract new members to your course. Retaining members could be an issue for similar reasons. If a downturn in customers is putting financial strain on your company, we can advise you on your options and how best to proceed. - Lack of innovation
Solely offering traditional golf could limit your market. Customers may demand activities with novelty value; golf driving ranges, pitch and putt. Fail to offer anything unique, and you could miss out on this emerging market. We can assess your situation if your company is facing financial challenges and you’re worried about its future viability. - Unaffordable operating costs
To keep the facilities in good condition and attract customers, golf courses need to be kept in good shape. This could come with steep operating costs. Maintenance, staff wages, and utility bills can add up, contributing to a golf course’s financial strain. Speak to us if you’re struggling to repay your company’s liabilities and are unsure which route forward would be best for you. - Seasonal downturn
To keep the facilities in good condition and attract customers, golf courses need to be kept in good shape. This could come with steep operating costs. Maintenance, staff wages, and utility bills can add up, contributing to a golf course’s financial strain. Speak to us if you’re struggling to repay your company’s liabilities and are unsure which route forward would be best for you. - Bounce Back Loans (BBL)
The government’s Bounce Back Loan initiative was 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 golf course
Below are two formal insolvency procedures that would allow a golf course to continue trading whilst being protected from creditor action:
- Repay your company debts in a payment plan via 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 your golf course to continue trading and to retain all your company’s goodwill and reputation with customers, whilst being protected from any creditor legal action. CVAs last for up to five years and once concluded, any remaining unsecured debt is written off.
More on Company Voluntary Arrangements - Restructuring your 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 while also making it more appealing to potential buyers.
More on administration
How we can help close and liquidate your golf course
If your golf course is insolvent and creditor pressure has reached a level where the business cannot continue to trade, liquidating the company would draw a line under its operations and write off its unsecured debts.
- Close your golf course down via a Creditors Voluntary Liquidation (CVL)
A CVL is a formal insolvency process designed for companies that are insolvent and have unmanageable debt. The process would close your golf course, ceasing its trading operations, terminating leases and hire purchase agreements, stopping future payments, and once completed, writing off any unsecured debts and arrears. If eligible, employees and directors will be able to apply for statutory entitlements such as redundancy and holiday pay. If the company cannot afford to pay staff entitlements, claims can be made through the Redundancy Payment Services.
More on a Creditors Voluntary Liquidation - Close your golf course down and start again via a pre-pack liquidation
A pre-pack liquidation is an informal term for a type of liquidation where one company pre-purchases the assets of an existing company that is then liquidated. This procedure would allow you to close your golf course, while continuing its core business under the purchasing company without any unsecured historical debts. Employees can be transferred under TUPE regulations, ensuring their continued employment. In some cases, you may be able to reuse your company’s trading name, but this can be complex. We can advise you on these processes and how it works.
More on pre-pack liquidation
Commercial finance for golf courses
If the company has an otherwise healthy cash flow but a large, upcoming payment risks its future, commercial finance could be a viable solution. There is 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.
More on commercial financeHow to get in touch with us: The next steps
If your golf course is facing financial challenges, it’s important to understand the different closure and recovery options available. Our initial advisers will guide you through the available solutions, giving you a detailed explanation of the best options, and our experienced consultants will look at tailoring our processes to your 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.
- Speak with our initial advisers
Make contact with our team, via phone, filling in a form, or online chat. We will assess your circumstances and, if suitable, arrange a free consultation with a consultant to discuss your company’s situation. - Initial assessment
During the consultation, we will advise if an insolvency procedure is the most appropriate route forward or whether alternative solutions better suit your company’s problems. - Formally engage with Wilson Field
If there is an appropriate insolvency solution, we will confirm the necessary steps to start the procedure and will issue you with the relevant documentation for you to formally engage us.
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