Navigating The Storm : An Insolvency Practitioner’s Perspective On The Current Rise In Corporate Failures

Situl Raithatha, Partner - Springfields Advisory LLP
 
I am sure many of you will have seen the headlines showing the rate of insolvencies continuing to rise and hit record levels. We have seen many high-profile insolvencies such as Wilko in the news.
As a licensed Insolvency Practitioner with over 30 years' experience, I have advised Directors on their company’s finances and administered numerous Insolvency proceedings where rescue has not been achievable. There is no single reason why businesses fail and sometimes they can be very unique. These are some of the commons themes we are seeing, and measures directors can take to mitigate the risks.
 
Cashflow Pressure
According to an Intuit QuickBooks study, it found around 69% of small to medium business owners suffered from sleepless nights due to cashflow issues. This is understandable as without a substantial cash flow status, the company would not be able to pay its financial obligations.
This includes the company employee...