Insolvencies in the Catering and Hospitality Industry: Challenges and Future Outlook

The UK catering and hospitality industry continues to face significant financial pressures, with 3,464 businesses in the sector entering insolvency in 2024. This includes hotels, restaurants, and pubs that were unable to withstand mounting economic challenges. Although this figure represents a 7% decrease from 2023’s total of 3,737 insolvencies, it remains alarmingly high, reflecting ongoing…

Unlocking the Benefits of Business Asset Disposal Relief in Members Voluntary Liquidations

For business owners considering winding down their companies, the Members Voluntary Liquidation (MVL) process presents an attractive route. A critical advantage within this framework is the availability of Business Asset Disposal Relief (formerly Entrepreneurs’ Relief). Understanding how this relief works and how it can benefit you during an MVL can significantly enhance your financial outcomes.…

Understanding Employee Claim Entitlements in Liquidation: A Guide for Employees and Company Directors

Navigating the complexities of liquidation can be daunting for both employees and company directors. When a company enters liquidation, it’s crucial to understand your entitlements and the steps to claim them. This article will provide a comprehensive overview, referencing key resources from the UK government.   Employee Claim Entitlements When a company goes into liquidation,…

The Effect of a Disclaimer in Liquidation

A disclaimer in liquidation is a powerful tool available to liquidators dealing with burdensome property or onerous contracts. When a company enters liquidation, the appointed liquidator assumes control over the company’s assets and liabilities. In certain circumstances, some assets or contracts may impose ongoing obligations that are financially detrimental to the liquidation process. To mitigate…

Introduction to the UK’s Special Insolvency Regime for Payment and Electronic Money Institutions

In April 2024, Taylor Wessing, a leading international law firm, published an insightful article shedding light on the UK’s specialized insolvency regime tailored for Payment and Electronic Money Institutions (PEMIs). This regulatory framework, known as the “RIU,” represents a significant development in the financial sector, aiming to address the unique challenges posed by the insolvency…