What is Business Restructuring?

Consider restructuring when you experience persistent cash flow problems, mounting debts, creditor pressure, or declining profitability. Early intervention is key—don't wait until it's too late.

Warning signs include: inability to pay suppliers on time, bounced checks, HMRC debts, threatened legal action, or using personal funds to cover business expenses. If you're experiencing any of these, contact us for a free consultation.

Not necessarily. Many successful companies have undergone restructuring and emerged stronger. In fact, proactive restructuring often preserves reputation better than struggling on until forced closure.

Informal restructuring can be handled discreetly. Even formal procedures like CVAs are increasingly common and viewed as responsible business management rather than failure. The key is acting early and communicating transparently with stakeholders.

Costs vary significantly based on your situation, company size, and the restructuring approach chosen. However, the good news is that costs are often a lot cheaper than you think.

These costs must be weighed against the alternative—uncontrolled failure often results in greater losses, personal liability, and the total loss of business value. Many restructuring costs can be funded from the business or included in payment arrangements. Contact us for a no-obligation cost assessment.

Yes, in most restructuring scenarios, your company can continue trading. CVAs and informal restructuring are specifically designed to allow continued operations while addressing financial difficulties.

Even in administration, the business often continues trading while a solution is found. The goal is typically to preserve the business as a going concern. Continuing to trade helps maintain customer relationships, employee morale, and business value—making successful restructuring more likely.

Formal procedures provide vital protection from hostile creditor actions. CVAs and administration impose a moratorium, preventing creditors from pursuing legal action, enforcing debts, or issuing winding-up petitions without court permission.

This "breathing space" allows you to implement your recovery strategy without constant pressure. It also protects directors from personal liability for wrongful trading, provided they act responsibly and take professional advice. Learn more about director protection and your legal obligations.

Employee retention is often a key priority in restructuring. In CVAs and informal restructuring, employees typically continue working normally. Their rights and contracts remain protected by employment law.

In administration, efforts are made to preserve jobs wherever possible, especially if the business is sold as a going concern. However, some redundancies may be necessary as part of operational restructuring. Employees have legal protections and may be entitled to statutory redundancy pay. We work to minimize impact on your workforce while ensuring business viability.

Informal restructuring can be handled very discreetly with high confidentiality. Only you, your advisors, and the creditors you're negotiating with need to know.

Formal procedures like CVAs and administration become public record and are advertised in the Gazette, though they don't typically attract media attention unless the company is high-profile. We help you manage communications with customers, suppliers, and employees to minimize disruption and maintain confidence during the process.