Corporate Restructuring For Businesses In Trouble

Businesses in financial crisis may be forced to restructure as refinancing their way out of trouble is becoming tougher.

In the light of 5 interest rate rises, the ‘Northern Rock’ effect, the collapse of the sub-prime US mortgage market and turmoil in our own stock market, banks are obviously lending much more cautiously. Combine that with more than 6 months of continued gloomy figures in retail sales particularly and it is clear the situation will not improve, especially in the short to medium term, advises Marshman Price, local business recovery and insolvency specialists.

“There is evidence that retail businesses in the region are suffering from current market conditions.  Furniture, carpets and allied trades as well as other household goods suppliers seem to be hit hardest as consumers are afraid to spend money on expensive household items,” Alan Price commented. “In previous years, these businesses have been able to borrow against assets to overcome short term ‘cash-flow’ issues but these avenues are becoming increasingly limited, or even denied, leaving businesses only one option – to restructure and manage their way out of the crisis.”

Businesses should take financial and business advice as early as possible from specialist companies such as Marshman Price so that they can come up with a rescue strategy, or they may inevitably fall on their sword as the number of insolvent liquidations remains high at 3,032 in the second quarter of 2007.

“For businesses seeking help as soon as they identify a cash-flow crisis, there are plenty of options and we would be happy to offer an hour’s free advice, completely confidentially, to alleviate some of the stress and look at putting a recovery plan in place.”

Please contact Alan Price or Neil Marshman at Marshman Price on Wellingborough – 01933 270 918 or email info@marshmanprice.co.uk.

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