Financial Advisory
Leonardcurtis
Full Credential Description
The client, an established online retailer based in the North West, faced a significant cash flow crisis due to the sudden withdrawal of critical lending facilities, which included a £1 million credit facility and a £900,000 overdraft and trade loan. This abrupt loss of £1.9 million in funding severely impacted the companys ability to meet its VAT and supplier payment obligations, leading to a £1.2 million liability to HMRC. The situation escalated when HMRC officers visited the company with intentions to auction its assets to recover debts. In response to this crisis, the director of the retailer sought assistance from Leonard Curtis. The restructuring and insolvency team provided guidance on potential insolvency options, while the business advisory team focused on negotiating a favorable Time to Pay (TTP) arrangement with HMRC. Leveraging their extensive experience with HMRC, Leonard Curtis successfully negotiated a three-year TTP arrangement for the £1.2 million debt. This strategic solution not only allowed the client to continue trading but also protected five jobs, preserved warehouse stock, and averted a forced insolvency process. The tailored approach provided the necessary breathing space for the business to stabilize its cash flow and maintain operations.