Teetering on the edge of financial distress? Experiencing a rise in household debts? Chances are, you are not alone. In fact, official statistics released earlier this year by The Insolvency Service revealed that personal insolvencies reached a total of 90,930 last year. These figures were alarmingly the highest recorded since 2010 and saw a 13 percent rise from 2015.

Consumer borrowing to blame?

Despite the UK’s decision to leave the EU in June, many had initially feared the result of Brexit would lead to an immediate downturn. However, last year saw Britain’s economy become the fastest-growing major advanced economy. At the same time, however, this has coincided with Britain becoming increasingly reliant on consumer borrowing with figures revealing that the rate of borrowing is at its highest for 11 years. Figures from The Bank of England revealed that in November 2016, consumers owed £178.2 billion on credit cards and loans, implying an increase of spending on the High Street. Figures also revealed that the average person in the UK now had borrowings of £2,759, all at a time where consumers are saving less. This amount is even more staggering considering mortgages were not taken in to account.

Economists had long predicted a period of healthy consumer confidence, especially with employment levels relatively high and purchasing power benefiting from earnings growth still running well above consumer price inflation. However, this is unlikely to last, especially if the economy weakens and prices are to rise due to Brexit uncertainty.

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It has been widely reported that numbers of public houses in England and Wales are contracting at an astonishing rate, with an estimated 6 closing every day for good. The pressures on the industry vary depending on which landlord you ask – some will cite the smoking ban as being the start of the rot, others will talk about steadily increasing taxes and a habitual change in the community generally that has moved away from the casual stop off for a “quick pint” of an evening in favour of the more cost effective trip to the supermarket.

The rise of Micro Pubs, particularly in the Kent region, is a sort of reaction to this - community based establishments springing up in disused railway arches and retail units that have been standing empty mean low overhead costs and the ability to offer a discounted pint.

However, one thing landlords will generally agree on is that the revaluation of way in which Business Rates are to be calculated from 1 April 2017 is not going to do the industry any favours.

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Following the UK’s decision to leave the EU, Britain’s top brewers have warned that the weak pound is putting the craft beer revolution at risk. With no clear Brexit strategy in place right now, the dark cloud continues to linger over future trade agreements.

With around 200 new breweries a year adding to the choice for drinkers, the country’s brewing industry has certainly been enjoying a fine renaissance. However, for small-scale brewing, it is not so “plain-sailing” as they start to feel the effects of Brexit, particularly with the soaring prices of imported ingredients and equipment.

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PCR are delighted to announce the launch of our new office in Kent. With offices; already in London, Milton Keynes, Sussex, Bristol and Newcastle, our Kent office is located at The Joiners Shop – a Scheduled Ancient Monument situated at the heart of Chatham’s world-famous Historic Dockyard.

This extraordinary building has a long and eclectic structural history, having undergone numerous alterations and additions over the last 200 years. The Kent office is being led by Danny Allen, who has been a resident in Kent for 15 years, and who has 17 years of experience in insolvency.

Our key operational areas include:

  • Corporate Restructuring: group/company re-organisations; financial restructuring; debt advisory services; exit strategy planning; solvent liquidation (MVL).
  • Advisory Services: Cash flow management; business plans; sales ledger management and credit control; finance raising.
  • Corporate Recovery; Insolvent restructuring; administrations; company voluntary arrangement; liquidations.
  • Personal Insolvency: IVA; bankruptcies; personal debt management.

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More than 70 jobs have been preserved at Accordial Group Holdings after their trading companies Accordial Wall Systems Ltd and Accordial Manufacturing Ltd were placed into administration. The Hertfordshire and Leicestershire based company, which manufactures and installs bespoke walls and partitions systems, was experiencing severe financial difficulties before a corporate rescue process essentially rescued the company from the brink of collapse.

A notice to appoint administrators was recently filed and following talks with prospective purchasers, a sale of the company’s business and assets was achieved in early December 2016. PCR Insolvency practitioners Mark Phillips and Julie Swan, partners at the insolvency firm, were appointed as joint administrators by the board of directors and conducted the sale. This achieved the continuation of the business and safeguarded the staff at sites in Hertfordshire and Leicestershire.

Mark Phillips of PCR said “We are delighted that we have been able to help retain the continued employment of staff following our appointments, as well as providing the best positive outcome for its creditors”.

Download this Press Release as a PDF

Ahmed Ali
Practice Development Executive

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