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.

Some naive comments from people saying you should “just get what you are owed”! It doesn’t work quite like that. And once suppliers know administration is possible they have no incentive to pay - much easier to deal with liquidator. That’s if they can even pay, and aren’t in the situation you are in.

You've done a great job keeping people in work for years. More companies than ever are being liquidated at the moment. You will get through this. People will understand.

I think you may not understand how hard it is to get invoices paid by larger companies. I significantly doubt the op isn't bothering, that's a ridiculous statement.

Companies delay payment because they know there's not a huge amount you can do about it, and because they may have their own cash flow difficulties.

But please, do let me know what miraculous way you suggest for getting invoices paid by uncooperative companies.

Op - remember that as an employee yourself you can make a claim to the liquidator for your own redundancy money and potentially get a share of what is available.

Thanks, that's good to know, I didn't want to ask dh about that.

That’s correct. They’ll apply to the redundancy payments service, it takes time and requires a case reference from the insolvency practitioner but they’ll get the money eventually.

jeez You’re blaze about £200k. Download templates of letters saying this is last chase before action. Send them registered. Then take action. “Chasing” isn’t enough. Come on op. Don’t give up fighting yet. I know it’s a scary time but you owe it to your employees and yourselves to get that money. If your customers get a sniff you are going bust they wont pay. Time to play hard ball.

good luck. It’s a horrible situation to be in

You'll get through this. You will.

Try not to worry. Yes it's easier said than done, but it's not going to help.

You are doing the right things - and while there might not be much work available where you are, COVID has changed the way businesses operate so you might be able to find something that will allow you to work from home - even if it's not in your usual field - to keep you financially afloat meantime.

Also look at how your DH is set up within the business. Directors are often employees too, so it's possible that he might be able to claim - afaiaa you can claim for holiday pay due, wages due, redundancy pay and pay in lieu of notice. So it will hopefully be a not insignificant amount.

You will get through this.

@Stompythedinosaur i do appreciate how hard it can be. I’ve been in business 25 years myself. But if they are big companies you have to do it correctly. Letters before action abs take action. Nothing to lose.

Which countries are your debtors in? Would help to know which jurisdictions we are talking about. You can lean on Companies in other countries so worth fighting for that outstanding £200k.

all you business experts saying “get your suppliers to pay isn’t easy” 🙄 no, suppliers don’t pay you.

worst case all employees will get paid by the government statuary redundancy if goes into liquidation

I am not blase. It may sound like it to you but I can promise you we are not. But I guess you'll have to take my word for it without me going into too much detail.

First things first.

If your clients pay, can the company survive with some redundancies? Could you use a factoring company to get the money from the outstanding invoices? Is the company actually insolvent now or you just know that you can't afford to keep it going?

If there isn't enough money to pay redundancy and outstanding wages to the staff, the state will pay, including you and your DH (assuming he is an employee too).

Please speak to a qualified insolvency practitioner. Accountants are great at what they do but they do not specialise in insolvency and related processes.

That's who dh is talking to tomorrow

Do what have you done to “chase” then op? Have you taken legal action to get paid? Have you invoiced for interest? Because if you haven’t it’s madness. You could even sell the debt to an agency if you can’t do it yourself.

have they disputed the invoices?

Sounds really tough op no advice just hope it gets better soon

Hope you're ok OP, such a difficult time.

I work in corporate insolvency. Your staff will be able to make a claim via the National Insurance Fund for redundancy pay and other statutory entitlements if the company is unable to cover these following the sale of assets during the liquidation process.

As a pp said, you'll also be able to claim as an employee and it's highly likely your dh will as well as director so long as he has been taking a regular salary through PAYE.

I know you must be extremely worried right now but the protection afforded by limited liability is so valuable in times like this so it's great to hear the company has been incorporated as a limited company.

OK

You are going to have to take my word for this as I'm not going to go into detail.

I am fully confident that dh has done everything he can do. Sorry if that's frustrating.

Thank you so much. That's a small relief at least.

I can only imagine how stressful this must feel for you both. The anxiety and insomnia of something horrible looming. The sense of responsibility.

As another poster said, everything passes and you're not alone. I'm worried about your husband. Do you think he's serious about feeling suicidal?

If so, has he got any family who can talk to him? Reassure him that to even have a business in the first place is incredible and that this has happened to the best of business people ❤️

This is a very difficult situation for both of you and your husband is obviously going to be upset, but he does not have a dispensation to be more upset than you-he needs to shelve his male pride and start dealing with the practicalities.

His family aren't very helpful at all, sadly.

I'm worried too as he will absolutely not be reassured or consoled by me no matter how much I tell him that we love him and we don't think he's a failure.

He is very much dealing with the practicalities.

I came on to say exactly this.

If an insolvency practitioner is appointed, they'll give you & all the employees information about how to claim from the Redundancy Payments office.

Notice pay, redundancy pay, some arrears of pay and holiday pay.

Sending good wishes too it must be such a worry for you OP x