Keeping Landlords in their place
We met the directors of a small joinery company. The business had been trading for eight years but the downturn in the construction market sector affected them badly; increasingly competitive tendering and cost over runs had resulted in losses. The company were also committed to a loss making contract.
The company had assets, but traded from a rented warehouse and stockroom in the middle of a site owned by their landlord – to whom they owed £30,000.
The landlord would have been within his rights to distrain on all of the assets in the warehouse and stockroom, resulting in no funds being available to any other creditor.
We’re small enough to move quickly and obtained an administration order within two hours of an initial site meeting, protecting the assets from the landlord to maximise the return to all creditors.