Retail Sector Closure and Rescue Options 

Welcome to our Retail Sector Hub, where we address the key challenges faced by the industry and tailored solutions to help companies overcome them. 

The retail sector is crucial in supporting the economy, generating employment opportunity and consumer spending. Companies such as supermarkets, retail outlets, convenience stores, charity shops, salons and hairdressers help urban areas thrive and stimulate economic growth. However, just as with any other sector, problems can occur with changes to the economy or lower consumer spending.  

When seeking insolvency advice for your company, it’s crucial that it addresses the specific challenges facing your industry. By taking a sector-specific approach, we ensure that our guidance and support is tailored to the pressures your company is facing and the market in which you work. 

Featured Industries 

Our team of licensed insolvency practitioners has extensive experience in assisting companies with financial difficulty, across all sectors. While we have experience working with a wide range of industries, we have also created dedicated pages, to help with specific industry challenges within the retail sector. 

• Supermarkets 
• Convenience Stores
• Salons & Hairdressers 

How we can help rescue your retail companies 

Below are two formal insolvency procedures, which would allow your company within the retail sector to continue trading while protecting them from creditor action.  

• Repay your company debts in a payment plan via a Company Voluntary Arrangement (CVA)
  A CVA is a formal payment plan between a company and its creditors that would enable your company to pay off its unsecured debts in manageable monthly instalments, whilst creditors in the plan cannot take further legal action. This procedure usually lasts up to five years, after which any remaining unsecured debt is cleared. The procedure will provide your company with flexible repayment schedules, allowing you to keep your company trading, maintaining its goodwill and reputation, preserving customer loyalty and market presence in a consumer-facing sector. 
  More on Company Voluntary Arrangements
• Restructuring your company through Administration
  Administration is an insolvency procedure for companies that are insolvent. Entering the procedure, your company will be in a temporary state of protection by a moratorium, that halts creditor action, including legal proceedings, giving your company the breathing space to continue trading. We will act as administrator and look to rescue the company as a going concern, by restructuring the company’s operations, management, and finances to increase efficiency and profitability. We will also look at the most appropriate exit strategies from the procedure, whether that be a potential sale of the business, assets or the whole company, or by transitioning to an alternative insolvency procedure. 
  More on administration

How we can help close and liquidate your retail company  

If you have a company within the retail sector which has debts and is insolvent, the liquidation of your company would draw a line under its operations and write off its unsecured debts.  

• Close your hospitality company down via a Creditors Voluntary Liquidation (CVL)
  A CVL is a liquidation procedure for companies that are insolvent. The process will formally close and liquidate your company, ceasing its trading operations, realising any assets and removing the threat of creditor legal action. The process will end payment arrangements, future payments, and upon completion, will clear all your company’s unsecured debts. You and your employees will be able to apply for statutory entitlements such as redundancy and holiday pay. If the company cannot cover staff entitlements, claims can be submitted through the Redundancy Payment Services. 
  More on Creditors Voluntary Liquidation
• Close your hospitality company down and start again via a Pre-pack Liquidation
  A Pre-Pack liquidation is a type of CVL where the sale of your company’s assets is arranged before liquidation, allowing business operations to continue seamlessly under the purchasing company. This approach enables you to continue trading your business, retaining essential assets, preserving your customer base and business relationships, and moving forward without any historical unsecured debts. You can also transfer employees to your new company under TUPE regulations, ensuring their job continuity. 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 retail companies 

If your company typically maintains a healthy cash flow but is facing significant upcoming payments that put strain on your finances, commercial finance could be a viable solution. There are various finance options available to help manage one-time expenses, or to bridge gaps in incoming payments Speak to use for a more detailed breakdown of which commercial finance options might be the best fit for your company. 

How to get in touch: The next steps 

If your company is facing financial difficulty, it’s important to understand the different closure and recovery options available. We have experience of helping different industries within the retail sector and can offer a comprehensive explanation of the options available to you, and our experienced consultants will look at tailoring our processes to your company’s situation. 

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

1. Contact our initial advisers:  
   Speak 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. Arrange a consultation: 
   During a meeting with one of our consultants, we will advise if an insolvency procedure is the most appropriate route forward or what alternative options are available. 
3. Next Steps: 
   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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