Wednesday Guest Blog

Jeremy Frost writes:

And this week we are talking about hairdressing and debt collection.   The first is probably not going to be an insolvency, but rather a cold hard look at the finances together with an even colder and harder discussion with a number of creditors about what they might or might not get back!  In the middle though is a guy that knows how to cut hair and knows how to employ other stylists who also know how to cut hair.  So we have lots to do on the admin side and a bit of realism to spread around; but we should save a big chunk of the business and leave them with the basic structure to assist them in running it going forward.   As I tell all my clients, we are like an A&E Department.   We can bandage you up, but we are not here to help you walk again.  We do know a number of people that can help you learn to walk if you would like us to refer you?.

The debt collection did put a smile on my face.  On one of our cases we were met with a debtor who, although we had cast iron paperwork, refused point blank to pay us!  “I would rather spend the money fighting you” was his precise statement.  Fair enough then I think!  Onwards!

County Court Judgment is obtained as, rather than turn up, they thought it was a good idea to instead send us an e-mail a few hours before the hearing stating they hadn’t had enough time to deal with the matter yet and asking for another month.   Next, because of the debt’s size we transfer the debt to the High Court (I am sure we all know a lawyer to assist with this process) and instruct the Sheriffs.  You know the ones on the telly!  The next thing that happens is we receive an application to set aside the judgment. So many deficiencies in the application that this should be a nice trip out to the Court in a couple of weeks!  And then, this week  we receive an emergency application.  What is that for I think?  Well it appears that the Sheriffs paid them a dawn visit earlier this week!   Got to meet a Personal Assistant at 5:00am in the morning!   They are obviously very lucky with their hiring policy.  I struggle to get my staff in for 9:00am!

Jeremy Frost FABRP MIPA, Director  Frost Group Limited

Tel: 0845 260 0101   Fax: 020 8915 1018    http://www.frostbr.co.uk

Freedman Alexander LLP  – solicitors in Epsom and Ewell – http://www.fallp.co.uk

Wednesday Guest Blog

Jeremy Frost of Frost Business Services writes:

Four day weeks do seem to disappear so very quickly; Although just as I was preparing to put my feet up, after the usual quiet week that you expect when the kids are off school, I got a call to help a local club who appear to have fallen out with their beer supplier.  Great I am thinking; into Court for an Administration Application:  Trade the club for a few weeks and then hand it back, complete with a loan to pay off the beer supplier and a business plan to ensure it can be repaid!.  And with a large mortgage free building this is going to be a doddle.

Err No.  I have spent the last day learning about how certain very old clubs are not registered companies with a simple Table A constitution.  Some can’t use Administration or Company Voluntary Arrangements.  Indeed the only thing this particular club can do is borrow the money immediately or Liquidate.  The debt is probably too big for one or two donations and, similarly the total debt is a material chunk of the annual turnover.  Now, for someone who prides themselves on turning businesses around, this is quite depressing!  So where is that drawing board!

Twenty Four hours later and after a lot of research, we have a new strategy.  Murder the old and start again!  Now, how to sell this to 75% of the several hundred individual members of the public who are members?  Paying them a cheque for £10,000 each might well be quite persuasive!    They can then use the money to buy a slightly smaller more modern venue in the same area.  Or maybe they won’t.  First meeting is with  a Committee this Friday night at 8:00pm.  And this was meant to be a short week!

Jeremy Frost FABRP MIPA, Director  Frost Group Limited

Tel: 0845 260 0101   Fax: 020 8915 1018    http://www.frostbr.co.uk

Freedman Alexander LLP  – solicitors in Epsom and Ewell – http://www.fallp.co.uk