Liquidation used to rescue a family business

A dental laboratory in Exeter, established in 1964, 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, plus the impact of the recession on the private market resulted in a reduction in turnover.

The family were left with no alternative but to cease trading at the end of June 2011 and the company went into liquidation during July. However, a member of the family felt that there was still potential to run a profitable business but on a smaller scale and therefore put an offer to the Liquidator to purchase the assets and goodwill of the company. As the offer was the highest received, it was accepted. 

The sale was successfully completed and the business is now trading again and is still very much a going 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 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 Associates for their professionalism and attention to detail, but hopefully, not in a hurry to use them again myself!" 

 

It is important to take early advice - whilst all options are still open. The longer matters are left, the less control you will have over the outcome, and the harder it becomes to save a business