Dh's business is insolvent. I'm panicking.

[Malrhia]

I am an employee- a proper one, I do the marketing and most of the design. So I am about to lose my job as well. He employs 15 people so redundancy costs will be high - they've all been there for years. It's not dhs fault, he's lost contract after contract to overseas suppliers despite doing everything he can to keep it going. He said a few weeks ago he was feeling suicidal over it all so of course his mental health is our priority. I'm 58 and jobs are hard to come by where we are (rural northern England). He's owed nearly 200k from suppliers who keep saying they are about to pay but don't. If they did we'd still have to close but at least we could do it properly. He's spoken to his accountants today who agree the only solution is to declare insolvency.

I'm really fucking worried about the financial side of things but more than that dh says he will be traumatised and 'destroyed' with shame when it closes. His dad started the business and it was successful for a time. Don't know why I'm.posting really I can't talk to anyone in rl about it. We don't owe the bank any money I guess that's something.

And dh just wants my unquestioning support which of course he has, but it means I can't mention how fucking worried I am about the future.

That’s really hard, I’m sorry.
Does Redundancy apply here though? If the company is insolvent then I’m not sure it does but your Accountant would know best

He's talking to someone about it tomorrow. We own the property so it seems tragic not to be able to sell that ourselves.

I think if it's declared insolvent the staff have to wait for redundancy after the recivers have taken their pick. We can't close normally as we cannot afford the redundancy bill.

I'm sorry but in that case there will be no magic redundancy money for anyone.

This too shall pass - this is temporary and although horrible for everyone, it's not the most important thing. Hope you are both ok x

If the company cannot pay redundancy then I think your employees can claim Statutory redundancy pay - have a look at the gov.uk website.

Thanks yes I know we'll get through it. Knowing its going yo happen is awful. Perhaps when it's done it will feel better.

I don't really have any advice but I am sorry to hear. I also know family with a business which had to close and how hard this was as they were also very emotionally attached to it.

I've been through a dp having a company become insolvent.

The big question is whether it is a limited company? If it is, it will much reduce any impact on you.

It will honestly be alright. It's shit at the time, but life goes on. I imagine you both feel responsible for the other employees, but all you can do is be honest with them about the situation. They can make a claim for their redundancy money and may get some of it when the company assets are sold.

Is your dh part of and business owner networks? I think he might find that this situation is not as rare as he thinks. Business owners can only do their best, and sometimes things go wrong that are not within their control. My dp went on to run a successful business after his experience. It isn't as devastatingly embarrassing as he imagines. But he's in the thick of it right now so it's tricky to have perspective.

Do you have an insurance that would cover you for a period if you both stop earning? How easy will it be to get other jobs? If you need to, a mortgage holiday can be a lifesaver.

Thank you so much I really needed to hear this. We have a good amount of savings so we'll be financially OK.for a year.

There is a National Insurance Redundancy Fund that staff can claim unpaid wages from if the company can't pay them.

It is a limited company yes

Well first of all I’d be playing hard ball with the people that owe you money (I assume you mean clients not suppliers). Now. You can download letter templates online and get that money in. Why aren’t you pressing clients to pay now? Make that your very first priority.

Can you jump sooner rather than later, getting a new role to keep an income coming in?

Its shit at the time but most companies come to an end probably within a century, I imagine any more than 3 centuries old are vanishingly rare. If you shut down sensibly you will be in a better position to rebuild in future. I've been through similar and there IS life on the other side!

Ha ha believe me we have. These are overseas clients.

Spent all day working on my cv

That’s good, it is awful but you will be ok

I really feel for you :(
My DH went through similar 10 years ago now, you will move on from it but it does take time and I promise the shame isn't as bad as you'd imagine, it shows he's such a good man as it's affecting him
Sometimes you can only try your best and as others have said external factors are at play
Where my DH was concerned once the paperwork was done and all dissolved etc, eventually he went back to work and now loves being stress free. Others go on to have perfectly successful businesses
Think of it as a reset rather than failure x

Thanks so much. That's incredibly kind and helpful

This. How blasé to not even bother to get the £200k owed to the business. No wonder the business is going bust.

Not bother?! We've been chasing one client for 5 months.

What a nasty comment. There's NOTHING to indicate anything even remotely blasé in the OP's posts.

I hope when you're down you don't come across someone like you.

OP - if you are also an employee this may help you work out what the government will pay you for redundancy etc

https://www.gov.uk/your-rights-if-your-employer-is-insolvent/what-you-can-get

I'm sorry, but downloading a template is not going to help. Usually businesses have reserves to support them through late payers but sadly we do not.

Thanks. Some people have nothing better to do I guess.