Book Shop

A partnership set up in 2000 selling a wide range of books found the business to be extremely successful after the first 2 years of trading. However in 2007 the partnership started to struggle with a major reduction in customers, and major build up of debts, in particular tax debts owed to HMRC.?

The business was unable to pay creditors, and struggling to pay their staff, leaving the partners without any salary.

Upon instructing us for tax help, our assessment illustrated that the situation was far worse than just tax debt, and getting an arrangement with HMRC for the partnership would not alleviate the underlying problems.

Our recommended IP was instructed and identified a number of problems with the partnership whilst having the firm belief that the business was viable. The partnership was put into administration to protect the business from any legal action from their creditors. The IP was the appointed Administrator and in the administration period he took full control he business. He restructured the business and reduced the staff as well as excluding all unprofitable business.

He then set up a PVA with the partners and the creditors which were affordable to the business and acceptable to the creditors. After the administration period, the partners were able to continue running their business with a successful structure in place to increase turnover.