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.

We've really cut everything to the bone. But we did try this

Other posters will have more useful practical advice, just wanted to say, that I’m sorry to read that you’re going through this, and well done on vocalising it - hope you’re also reaching out irl too - keep communicating with people, don’t think you have to shoulder this alone. Hope you both get through this as quickly and as easily as possible. And don’t give up, you’re stronger than you may realise - you will get through it, this too will pass 💐

I'm sorry you're both going through this. I have not experienced a business failure, but (from other nasty life experiences) highly recommend: getting good professional advice, figure your moral support group, and talk to others who have been through the same thing. Your accountant may know of other clients they can put you in touch with (not implying negativity about your accountants!).

Good luck.

The assumption that she is blasé about collecting £200,000 worth of debt is just mind-boggling.

What do you imagine that turning up on the doorstep will achieve?

It's a bit of a struggle to believe you have any actual experience I'm afraid. It seems like your understanding of this common situation is pretty poor.

I'm sorry for your loss.
Can suppliers who owe you money beforced to repay you?

Do your employees not already have an inkling? Whilst everyone says don't do anything till the IP had advised you, I feel quite differently about this, from the inside. It's the not knowing, not being communicated to, which does the most damage. most staff would rather be given a heads up, under strict provision that it's kept confidential. Of course you don't want news getting out, but there a balance here that employees often lose out. Your house is not at risk. Their's could be.

@Malrhia hand hold from me - I'm where you are but have lost our house too! It's so scary - am very late 50's and the future is terrifying. Both working now for other companies and the insolvency windup is taking an age.
@Rachie1973 it's lovely to hear that you are through the other side - do you have a plan of how you are going to pay rent when you are of retirement age? This is my biggest worry now. All we ever did was work hard and employed over 30 people now we have nothing thanks to covid! It's heartbreaking.

I went through something similar and it was heartbreaking at the time so I sympathise. I shut down my business (a boutique) and spent the last day in tears as I vacated my premises. It was a bit different as I made my staff were aware we were going to close down quite some time in advance, and for nearly all of them it wasn’t a career job so they were supportive and kind. But that shop felt like my baby and I was heavily invested in it, both financially and emotionally. Both my partner and I went back to being employed in the industries we worked in before we set up the business and I went into an IVA to pay back debts. I actually sold my flat to accomplish this too. So really, financially, I had to start again from scratch. Fast forward l now have a really great job and life is a lot less stressful. I am out of the IVA and my credit rating has been restored. I look back on that period almost as a bad dream. I don’t own a property again yet, but am saving a deposit and I will get there again for sure. But I am much happier and less stressed being an employee than when I owned a business myself, despite all the love and pride I had in it. I am so sorry your husband is feeling so bad, but hoping you both find new paths that are fulfilling and that this is a happy new chapter for you both in the long run.

make your staff aware asap.
Sort both your CVs.
Ensure you can cutback where you can on your living costs.

Then just have to sail the boat through the storm.

You have your health and your home.
You will be fine.

Nothing to contribute except sympathies. Such an awful time for you. 💐

Oh fgs. Of course they are doing this. The OP has said they are. Don't be ridiculous. Have you ever worked in credit control of overseas clients? No?

First of all, huge hugs. My husband was director of a company that went bust during the 2007 crash, I know how scary it is when you feel like you have to be strong for your husband, and it means that you can't talk to anyone nervous ot feels disloyal.
As far as the money that is owed I know you are not blase about it. Sadly, if the other companies suspect that your company is about to go bust, they have every incentive to wait until it happens
. This is why my husband's business went down -they were contracted to do a massive project and didn't get paid for it because the company who commissioned it got into financial difficulties

I think I recall you saying the business owns a property. Can this not be sold and then thr company wound up on a solvent basis if the proceeds of sale cover all the outgoings such as redundancy etc

How unkind. Maybe your words will come back to haunt you when you are in trouble.

This has happened to a great many entrepreneurs. You are in good company.

A relative had to make 100 staff redundant after Brexit ruined their business. He didn’t do anything much for a while - just took stock and decided where his priorities lay for his life, then picked himself up again and you both will too. He is now in the same industry with his own business once again and actually is happier than before, with a smaller firm and better work life balance.

It may help you both to feel more in control to write a press release for the local paper once you are at the point of announcing it to the world. My relative did this, and put the published article on Linked in, to explain what happened.

The business community were sympathetic and he got lots of kind comments. Business people generally understand that this is something that can happen, and getting overseas companies to pay invoices can be a real challenge, especially in the US where in my experience there seems to be a culture of late payment.

It might help you both to have some counselling from someone who understands business just to work through your feelings.

Well isn’t it just a shame it’s not you in OPs position then because I am sure you would just be so much better at it than her 🙄

Not really as the business can't function without the property.

@Malrhia previously being a business owner who had to make some decisions that made me feel I had let a lot of people down I think it is really important that your DH talks to someone independent now about his feelings particular as he has suggested that this is seriously affecting his mental health. Not being paid by customers is way so many small business are brought down he is not the first or the last and he is unlikely to have been able to avoid this. But he needs to off load all his guilt and he won't be able to do this with you.

I'm pretty sure this poster has never relied on payments from late payers, but the most offensive thing about that post is the intimation that we are giving up. If they had any clue what the last five years have been like (which, fair enough, they don't) they wouldn't say that.

Yes I tentatively suggested a counsellor yesterday and will insist on it once this process is moving forward.

He sees his mum a few times a week but that relationship is about him looking after her, doesn't really seem to work the other way round. It would be nice if he had an emotional relationship with her but it all seems quite transactional.

OP I hear you and am really thankful you posted this.

We are on the same journey, just a few steps behind you. We have come dangerously close to insolvency a few times over the last couple of years precisely due to client non/delayed payment, similar amounts to you. We are a small manufacturing co. And this has had a Massive impact on cash flow with bank/suppliers screaming at us.
We are also a limited company which does offer some protection but when the words "over-trading" are mentioned it is terrifying.

I have another pt job although it's minimum wage - without that we wouldn't have survived. We have no savings and for several months we have taken a reduced salary to ensure everyone else gets paid.

Things are on a slightly more even keel now: we have changed the direction of a business and sadly been forced to make some employees redundant. However it lurches from month to month and the worry is always there.

It's really helpful to read people's thoughts as maybe the reality of insolvency is preferable to living with the constant threat of it hanging over your head.
The fallout from this never ending nightmare has impacted our marriage, MH, family life and it's horrible. I would happily walk away from it all but DH's whole purpose seems to be keeping it afloat.

@hohum12345 it's awful isn't it - I have no one to talk to that understands. My husbands MH hit rock bottom, we are now slowly building that back up. He won't talk to anyone sadly. I'm exhausted. We went through making some redundant to try and hang on but it was too little too late.

This has been so helpful if nothing else to discover that others are or have been in the same boat. Hopefully we can support each other.

@hohum12345 we've been living like that for years and it's soul destroying. I'm slowly changing my mindset and trying to accept that this final blow is the universe's way of telling us that we have to stop this (sorry if that sounds a bit woo but I've got to that stage!). I don't think dh can take any more disappointing news, we are now losing more contracts as everything is going to China.

@Cantstandsmugness I am actually training to be a counsellor (although will have to stop if I lose my salary) and can tell its imperative that dh talks to someone. It will be non negotiable when he's in a position to hear it.