The Situation
Sarah was the director of a family-run restaurant in Blackpool.
The venue had been a local favourite for years but struggled post-pandemic with lower customer numbers, rising food costs, and increased energy bills.
By early 2024, the business owed £38,000 in rent, £14,000 in unpaid utility bills, and had a £25,000 Bounce Back Loan still outstanding.
Attempts to renegotiate rent with the landlord had failed, and energy suppliers had issued disconnection warnings.
Staff wages were behind, and bookings continued to decline.
The business was no longer sustainable.
The Director’s Concerns
- “What happens if I just walk away?”
- “Will I be chased personally for the rent and energy bills?”
- “Can my staff claim redundancy if I shut down?”
The Solution: Creditors Voluntary Liquidation (CVL)
We walked Sarah through her legal duties and available options.
Strike off was not viable due to the debts and creditor pressure.
CVL provided a structured and legal way to close the company.
A CVL allowed Sarah to:
- Stop landlord and utility enforcement
- Ensure employees could claim statutory redundancy pay
- Write off the Bounce Back Loan, rent arrears, and other unsecured debts
We connected her with a licensed insolvency practitioner and began the liquidation process within 7 days.
The Outcome
- Business closed legally via CVL
- Employees claimed redundancy pay successfully
- Director faced no personal liability – she had not given personal guarantees
- The landlord recovered the premises without legal conflict
Key Takeaways
- Rising costs in hospitality can quickly become unmanageable
- Rent arrears and utility debts are written off in CVL
- Staff are supported via government schemes after liquidation
”"I was devastated to close, but Business Helpline helped me do it the right way. I’ve now started working as a chef again, without the stress of the debt."
SarahFormer Restaurant Owner
