Case Study – How we Helped a Struggling Karting Company to Continue Trading

The right approach to dealing with a struggling and desperate business owner meant that creditors were addressed in the correct way and the business could continue to trade…

The problem

We were contacted by the owner of a karting and leisure activities company who, due to no fault of his own was struggling to continue in its current form.

A drop in trading and increase of overhead costs had our client in a desperate situation, which in turn, was causing him a great deal of stress.

The company was incurring debts, it had no assets and the director was funding it from his own pocket.

Until he came to us he had no idea of the severity of the companies situation, however he knew it simply couldn’t continue, he also knew that if he continued he would be at risk of trading whilst insolvent which can have many consequences on Directors.

The solution

We offered him a way forward – a company restart, this involved the closure of his current company and a new company to move forward with.

The director also wanted to make sure that the people that were owed money would not feel like they had been taken advantage of.

We put all of the necessary measures in place, this included addressing the existing liabilities by helping the owner come to agreeable terms with his creditors, and putting in place a new structure to help ensure the issues which led to the problems originally wouldn’t occur again.

Once all the problems were addressed we closed the old company and this allowed a new company to be formed and to start trading.

The new company is now trading well with no debts or liabilities hanging over its head and the Director is far less stressed and worried.

Need some free advice?

If you think this approach may work for your company please feel free to get in touch with us for some free advice on 0800 975 0380 or email [email protected], We’d be happy to answer any questions you may have.