Insolvency is indiscriminate in who it chooses to afflict. Purely and simply, if your assets no longer outstrip your liabilities then you are at risk of insolvency regardless of your company's reputation or stature. The risk of insolvency is a risk that cannot be ignored and this is something some of the UK's most recognisable companies found out the hard way.

Insolvency – Some Of The Hardest Hit

A large number of the UK's most recognisable names have come face to face with insolvency and not all have lived to tell the tale. Here are some of the larger companies who have been hit with insolvency:

Insolvency Case Study 1 – Little Chef

Once the darling in England's roadside eateries, Little Chef, found themselves in administration and facing insolvency in 2007. The beginning of the end for Little Chef was when they tried introducing healthy eating to their establishments. This caused outcry and the owners of the Little Chef chain were forced into insolvency. Fortunately, the company was bought by a turn-around specialist which saw 193 of their 225 restaurants remaining open.

Insolvency Case Study 2 – Farepak

The savings company Farepak went into insolvency in October 2007 which was seen as a national tragedy as it cost a vast number of low income families their annual savings. Farepak assured customers their money was safe but when entering insolvency, most of their customers lost between £400-£2000. Farepak's lender, HBOS, declined their request for further borrowing and the company ceased to exist.

Insolvency Case Study 3 – Courts

Back in 2004, the home furnishings company, Courts, applied for insolvency after racking up debts of £280 million. At one stage, Courts had over 350 stores around the world, including over 100 in the UK. However, insolvency was inevitable when their sales plummeted and shares dropped over 95% in 12 months.

What is clear is that insolvency can affect anyone, big or small, and the only way to avoid it is through sound business principles and good financial management.

Talk To Varden Nuttall About Insolvency

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.