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