Business rates aren’t fit for purpose but Rishi Sunak’s digital tax is a sticking plaster, not a solution July 30, 2020 Long before the coronavirus pandemic, our high streets were struggling. Faced with the rise of online sales, many well-known retailers were either closing stores, entering a form of insolvency known as a company voluntary arrangement (CVA), or falling into administration. The oft-quoted analysis of this demise was that the costs of running a physical store [...]
Pizza Hut hires advisers to explore insolvency agreement July 29, 2020 Casual dining chain Pizza Hut has reportedly hired advisers to explore a potential insolvency agreement, which could involve significant job cuts. Pizza Hut Restaurants has hired restructuring firm Alvarez & Marsal to weigh up a company voluntary arrangement (CVA), Sky News reported. A final decision has not yet been taken but an insolvency agreement is [...]
Government to draw up legislation to protect consumers during insolvencies July 27, 2020 The government will bring forward legislation to protect consumers when retailers go insolvent, with the UK’s Law Commission slated to draw up the new laws. Under existing legislation, any goods that have been pre-bought by consumers, but not yet collected, are counted as assets if a company becomes insolvent. They can then be held by [...]
EY prepared ‘unqualified audit’ for Wirecard last month July 24, 2020 EY reportedly prepared an unqualified audit opinion on Wirecard’s accounts in early June, just weeks before the company collapsed. The auditing firm delivered a draft version of its official audit opinion, according to the Financial Times. Accountants usually share a draft to give clients the opportunity to look over the numbers and assessments. The draft [...]
Companies borrow £48bn through UK coronavirus loan schemes July 21, 2020 Close to £48bn has now been lent out through the government’s coronavirus loan schemes, with the bounce back loan (BBL) programme offering by far the most support for businesses. It comes as the UK government accelerates plans to reopen the economy. Pubs, restaurants and cafes were opened at the start of this month and gyms, [...]
Begbies Traynor hails ‘strong financial performance’ as revenue surges July 21, 2020 Corporate restructuring specialists Begbies Traynor hailed a year of “strong financial performance” as revenue rose 17 per cent. Shares in the AIM-listed firm rose 0.6 per cent as markets opened. The figures For the full year, Begbies Traynor said that revenue rose from £60.1m to £70.5m, an increase of 17 per cent. However, profit before [...]
Physical? Hybrid? Virtual? Companies re-imagine AGMs for 2021 and beyond July 20, 2020 Could the annual general meetings (AGMs) of 2021 and beyond look and feel very different? As companies start to consider the future format of corporate set-piece events, so the possibility arises these often sparsely attended gatherings could begin to evolve into significantly more enlightening and engaging occasions. This year’s AGM season largely coincided with lockdown, [...]
More SMEs eligible for coronavirus loans under rule change July 17, 2020 An abrupt U-turn in lending rules means SMEs banks previously rejected for coronavirus loans may now be able to get the vital cash they need to survive. Small businesses with fewer than 50 staff and less than £9m in annual turnover will no longer be considered “undertakings in difficulty” under EU state aid rules amid [...]
Pizza Express draws up plans to close 75 restaurants July 16, 2020 Pizza Express is drawing up plans to close up to 75 restaurants around the UK as the pizza chain undergoes a wide-scale financial restructure as a result of the coronavirus crisis. The company is mulling the closure of “around 75” of its 470 UK outlets through a company voluntary arrangement (CVA), Pizza Express said today. [...]
FCA hires accountancy firm BDO to help monitor Wirecard July 16, 2020 The Financial Conduct Authority (FCA) has drafted in a team of accountants to aid with its monitoring of Wirecard. The City watchdog has hired BDO to work on its response to the Wirecard crisis, according to Sky News. The FCA reportedly appointed the firm to ensure the now insolvent German firm complies with a series [...]