Which way to turn??

ktw_3

Hi, I have a business which i have had for 11 years but unfortunately i am faced with the prospect of shutting the doors. No matter what i do i cant turn it round (unless i had money to invest that is - which i dont anymore). Its a limited company. The debt for the company isnt huge, maybe about 8k, plus a phone lease which the company say is about 20k left. Unfortunately, i am the personal guarantor on the overdraft/loan for the business which is about 19k. Because the business has been doing so badly for the past 18months or so, i have been living on credit cards and therefore have created a fairly huge debt with various cards. I have no assets. I have been advised to close the business and also declare myself personally bankcrupt. This is such a scary thought, and feel so weighed down by all of this, that i really need some advice. The thought of bankcruptcy is so frightening to me, but i cant see an end to all this.
any advice would be very welcome
kind regards
ktw

chevalier

Hi there
I wanted to say welcome
two things
1) have a look at the bankruptcy sub forum of this forum. Lots of advice and support on there as well as here
2) have a word with your accountant and see what he says. Could you sell the business as a going concern?
best of luck
there will be more knowledgeable people along tomorrow, but didn't want you to think you were alone
chev

ktw_3

Hi,
Thanks for your message, I have had a look at some of the info on the forum and it is all very interesting and helpful. I have spoken to my accountant and he has basically said "youre bust"! Which was hard to hear. I have also got the business up for sale as a going concern as it is a business that could be turned around, but only with investment. The sad thing is that unless i get a buyer pdq, i cant see any option, but to close it. Its at the point, where i am struggling to pay wages, (I have cut hours down to a bare minimum), I cant pay myself anything to speak of, and have other debts just accumulating . I guess this has been coming for a while, but now i think crunch time is here, unless ofcourse i win the lottery (but then again, i havent got a spare £1 to buy the ticket!!)
kind regards
ktw

highguyuk

You could go on Dragons Den? Get the investment?

If your accountant says the business is bust, it sounds like you need to start consider how to go about bankruptcy. Keep reading the advice on here, search the internet etc. As there are other staff involved, you will need to officially inform them etc and this could take time.

All the best - all will be fine in the end

ktw_3

Thanks for message - think Dragons Den would probably feed me to the lions.
I am reading all information i can find on the bankcruptcy side, it seems that most people say its not as bad as they thought, but all seems pretty daunting to me. The accountants advice was that if i want to get my life back, this is my only option.
I am sure it will all be ok in the end, but the end seems a long long way away - and will i ever get there?????
x

TTMCMschine

What is your business?

ktw_3

ceramics manufacturing

david_hellier

Don't worry about bankruptcy. I suggest you wind up and focus on looking for a job to pay for the most important bills, rent etc. You need to lay off the staff immediately as a damage limitation exercise.

TTMCMschine

You mean like potting, or something else?

Lara44

Hi Ktw

The china manufacturers we work with are all really struggling and our costs have gone through the roof because of the energy price hike. We are being hit by a slowdown in retail here and more importantly in the US where our stuff mostly sells.

My boss also works as a consultant, this makes for a more rounded business, it means we can afford some slim profit margins in the shop. We are all feeling the pinch at the minute. Bets of luck with whatever you decide.

Lara x

ktw_3

Thanks Lara,
Its mainly the slowdown in retail that has effected us, plus lots of businesses we supply going bust and owing us money. Being a small company ourselves, we can only take so many hits. Thanks for your message
ktw