This family run dental laboratory in Exeter was established in 1964 and produced prosthetics, crowns and orthodontics to surgeries and laboratories throughout the UK and Ireland in addition to Dental Schools and Hospitals.
A rapid decline in the UK dental market caused by new NHS contracts to dentists, plus the impact of the recession on the private market resulted in a reduction in turnover year on year and the costs involved in restructuring the business were too high for it to be viable.
The family therefore had no alternative but to cease trading at the end of June 2011 and the company went into liquidation during July.
A family member felt that there was still the potential to run a profitable business on a smaller scale and therefore put forward an offer to the Liquidator to purchase the assets and goodwill of the company.
The liquidator has a duty to ensure that the best possible price is achieved for the sale of the assets in order to payback monies owing to creditors and in this instance the offer from the family member was the highest received.
The sale was therefore completed and the business is now trading again and still very much a family concern.
Alison Byrne states, “Directors can be under considerable pressure when facing the potential failure of a business and when the business is a family concern this pressure can be even more difficult to deal with. The formal liquidation process whilst still hard to face does give some respite in that the immediate pressure of creditors chasing for payment is ended. As a family run business ourselves, we understand the additional stresses faced by family businesses when they are dealing with tough decisions on the future survival of the business through the current economic conditions.”
Comment from the family:
“I would definitely recommend Byrne and Associates for their professionalism and attention to detail, but hopefully, not in a hurry to use them again myself!”
Byrne Associates can provide confidential advice on dealing with the potential insolvency of your family business, contact us today on 01275 464 038.
