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Caffe Nero appoint KPMG to assess options

2nd December, 2020 in Hospitality News What is a CVA (Company Voluntary Arrangement)?

2.12.2020Gerry Ford, the controlling stakeholder of Nero Holdings, pledges a £5m survival fund for Caffè Nero.Creditors of the coffee chain voted earlier this week and approved a CVA after the board refused to adjourn the vote following late emergence of a takeover bid.As part of the CVA, on the condition it was approved, shareholders committed to provide a £5m standby fund for the business, in case additional liquidity was needed. This is to be particaulary helpful in ensuring the survival of the business and protecting creditors until more normal trading conditions can return and when the agreed turnover-based rent structure can occur.30.11.2020Mohsin and Zuber Issa, the billionaire brothers behind the British petrol retailing powerhouse EG Group, have launched a takeover bid for Caffe Nero, just hours before the chain seeks approval from landlords to cut its rent bill.A CVA is to be voted on this afternoon. However, it is unclear if Caffe Nero has responded to the EG offer yet and so what the offer terms are - could the bid force the coffee chain to postpone the vote?Update 13.11.2020Last night coffee chain, Caffe Nero put itself into a company voluntary arrangement.Founder, Gerry Ford, explained that this was due to the second lockdown which has caused the chain to suffer, from limits to socialising, less shoppers in town centres and workers being told to work from home.KPMG are working with the company on this insolvency procedure. The CVA needs to be backed by landlords and creditors to be successful.------------------------------------------------------------------------It is understood that high street coffee chain, Caffe Nero, is the latest to look into rent cuts from its landlords in order to allow itself to recover from COVID-19 which has caused devastation to the hospitality sector.KPMG has been appointed to help the chain assess its options which include mechanisms to cut rents and close stores. Could a CVA, known to help struggling businesses cut rents and close stores, be likely?Caffe Nero has 660 UK stores, with almost all of its outlets, minus 30, reopening since the coronavirus lockdown ended in June.Before Coronavirus hit, 135 million customers were served annually and the chain had around 5000 employees. As with others in the hospitality sector, the unprecedented virus and lockdown has had a massive impact.A source close to the company has said that exectuvies have been engaging in ‘’constructive dialogue’’ with landlords but needed talks to intensify as the company seeks to address its fixed cost base.Sky News report more.

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Caffe Nero appoint KPMG to assess options

Hayford & Rhodes is sold to McQueens Flowers

1st September, 2020 in News Retail

KSA Group is pleased to announce that one of the oldest luxury florists in London, Hayford & Rhodes, has been sold to McQueens Flowers.Established in 1924 in London, Hayford & Rhodes began their story as William Hayford, a heritage luxury florist, whom were the first in the City to deliver flowers on a wide scale and became the florist of choice for high profile clients including Winston Churchill, The Mayor of London and The Queen Mother. Now they are an award-winning florist, delivering bespoke designs to diverse client groups, suiting all types of occasion. They live by and stand out from the competition by striving to achieve its mission to never replicate the same design twice.Unfortunately, the recent pandemic forced a temporary cessation of a large proportion of the business and resulted in the need for the company to be restructured. Wayne Harrison and Eric Walls of KSA Group were appointed as administrators on 27th August 2020 with the business being sold to McQueens Flowers Ltd, saving 8 jobs.McQueens Flowers Ltd have been in the florist industry since 1991, gaining a reputation for creating colourful, creative floral designs, perfectly matched to every occasion and setting. It has provided the flowers for the prestigious Vanity Fair Oscars After party for the last 25 years, among being involved in many other stunning high-profile events. Not only does it have a flower shop offering same-day delivery in London, but it also has creative studios, workshops and flower schools in London, New York and Seoul and serves customers worldwide, including UAE, Hong Kong and Australia.

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Hayford & Rhodes is sold to McQueens Flowers

Buzz Bingo announce CVA plans to protect its future

15th July, 2020 in News What is a CVA (Company Voluntary Arrangement)?

This news comes as part of a coronavirus crisis rescue deal for the group.Buzz Group, the UK’s largest retail bingo operator by club numbers ahead of Mecca, said it had been forced to make ‘’difficult decisions’’ since its estate was placed into lockdown when the pandemic first hit.Chris Matthews, CEO told members that the permanent closures would be a part of a company voluntary arrangement restructuring deal to ‘’protect the future of Buzz Bingo’’.The following sites are listed to be shut down:Antelope Park (Southampton) Banbury Boston Bournemouth Bridlington Carlisle Chathnam Chorley Cramlington Debry Foresters Edinburgh Westerhailes Harpurhey Hereford Kilmarnock Milton Keynes Oxford Kassam Stockland Green Salford Sailsbury Tamworth Wednesbury Weymouth Wigan Robin Park Wolverhampton Worcester Wythenshawe573 jobs are at risk from the above listed 26 permanent bingo hall closures.Buzz, which also has an online operation, said its other 91 clubs would continue to trade. Re-openings are planned to begin at 12 sites from 6 August.Matthews stated: "The ongoing pandemic has had far-reaching consequences for the entire leisure and hospitality sector and an immediate and significant impact on our business. Following a thorough review of our options, the proposed CVA will restructure our retail portfolio to ensure we are well positioned for a return to growth, while adapting to the ongoing, challenging environment as we start to reopen the majority of our clubs."

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Buzz Bingo announce CVA plans to protect its future

Harveys Furniture Goes Into Administration

30th June, 2020 in A guide for redundant employees in administration or insolvency situations News Retail

Harveys Furniture has gone into administration as it fails to find a buyer.240 jobs have been immediately lost whilst 1,300 others are at risk. Harveys’ sister chain, Bensons for Beds was also put into administration, though it was bought out in a pre-pack administration by its private equity owner, Alteri Investors..Administrators from PwC are looking for a buyer, which includes the purchase of its 20 stores and three manufacturing sites.For now, its stores continue to trade but those in the industry believe a buyer is unlikely to be found.Zelf Hussain, joint administrator at PwC said: ‘’the group had been facing increasingly challenging trading conditions in recent months, in particular Harveys furniture business. This has resulted in cashflow pressures, exacerbated by the effects of coronavirus on the supply chain and customer sales. It has not been possible to secure further investment to continue to trade the group in its current form.”

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Harveys Furniture Goes Into Administration

Oasis and Warehouse likely to go into administration

17th June, 2020 in A guide for redundant employees in administration or insolvency situations News What Does Going Into Administration Mean?

17/06/2020Almost two months after Hilco Capital secured a deal to buy the Oasis and Warehouse brands, saving it from administration, we hear that the Oasis and Warehouse online businesses and their associated intellectual property would be bought by Boohoo.Boohoo has a market value of almost £4.7bn. Its portfolio of brands now moves to 9. Just last month it struck a deal to buy the minority interests in women's fashion retailer, PrettyLitttleThing.30/04/2020Today we hear that Hilco Capital, the former owner of HMV, has agreed a deal with administrators regarding high street fashion chains, Oasis and Warehouse.Hilco has agreed to buy both brands, along with Idle Man and the stock from their many outlets across the UK. So, the intellectual property assets and some stock has been sold.However, Oasis and Warehouse Group's stores are not included in the deal, meaning immediate redundancy is the case for over 1,800 staff. The staff have been told no statutory redundancy pay will be received.Since, April 22 the retailers stopped trading online because of the “rising costs of fulfilling online orders and associated logistical challenges, after appointing Deloitte as administrator the previous week.''Joint administrator of Deloitte, Rob Harding explained the sadness of having to said: “It is with great sadness that we have to announce a sale of the business has not been possible and that we are announcing so many redundancies today. This is a very difficult time for the Group’s employees and other key stakeholders and we will do everything we can to support them through this.”15/04/2020Addressing the rumours from yesterday, it is now confirmed that high street fashion chains, Oasis and Warehouse have fallen into administration. Deloitte are the appointed administrator.92 stores and 437 concessions are affected, all these being in UK. 200 jobs have been lost with immediate effect. Around 1,800 staff, including those on the shop floor, in concessions and those at head office, will be furloughed.The brands will continue to be sold online, whilst the administrators work on finding a buyer.Chief Executive of Oasis and Warehouse, Hash Ladha explained the situation as unpredictable, shocking and difficult for all.Joint Administrator at Deloitte, Rob Harding said how the retail industry as a whole was suffering devastating effects from coronavirus."Despite management's best efforts over recent weeks, and significant interest from potential buyers, it has not been possible to save the business in its current form."It is thought that there will be interest from bidders in buying the businesses but of course with the current economic situation, it is all very uncertain.14/04/2020Oasis and Warehouse look likely to be the next casualties of the coronavirus crisis. Sky News has reported that they are about to file an intention to appoint administrators at Deloitte, with an announcement expected later on Tuesday or Wednesday.Three weeks ago The Oasis and Warehouse Group, which is owned by the failed Icelandic lender Kaupthing, was approached for a possible sale from an unnamed buyer. Kaupthing has managed to offload some of its brands already such as Karen Millen and Coast to Boohoo.Although there is understood to have been strong interest in a deal, the uncertainty caused by the coronavirus pandemic is thought to have made a solvent sale impossible to conclude.Both retailers support approximately 2300 jobs.The difficulty facing many retailers is stark. The High Street has already been under pressure and the creditworthiness of these companies has made them unlikely to be able to draw on the government help with respect to loans. Yes, they can benefit from the furlough arrangement and the business rates but with high rents and creaking balance sheets it is likely that many won't be able to make it through this crisis.

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Oasis and Warehouse likely to go into administration

Intu warns it could go bust unless it can raise additional finance

1st May, 2020 in News Retail

01 May 2020In attempt to fix its balance sheet, Intu, the struggling shopping centre has appointed David Hargrave as chief restructuring officer and non-executive director.Hargrave is experienced in the transaction businesses of the Big 4 accounting firms. He has worked in leading processes of change or business restructure. He was a partner at EY and PwC.Intu stated it received 40 per cent of its rent due for the first quarter of the year. Discussions are being held with tenants to collect the other 60 per cent; Advanced discussions being held with tenants to represent a further 28 per cent of the amount due. The property giant is in the process of confirming revised payment plans with its occupiers. Currently it is offering tenants monthly rents to the year end.Despite this, ''robust action'' is a threat for those ''large, well-capitalised'' brands that have not paid rent.27 March 2020Update; Intu have only managed to collect 30% of their rents this quarter day compared to 77% this time last year. Surely they cannot survive in their current form.Intu, one of the largest shopping centre owners in the country, has warned that it is likely to go bust unless it can raise more finance. This is not really that surprising as Intu, which owns Lakeside, Trafford Centre, and the Metro Centre was already in a difficult place due to falling rents in its shopping centres and the need to write down the value of its assets by £2bn . The company has a large debt of some £5bn that needs to be refinanced and recently announced losses of £2bn. In January, the firm approached its shareholders to ask for more money amid the downturn in the retail sector.Last week Intu said it was at risk of breaching debt covenants after it was forced to abandon the fundraising attempt. It said "extreme market conditions" deterred investors from giving fresh cash. To try and offset this they have been trying to sell their shopping centres. But really, who will buy them now?Intu owns the following centres:Braehead, Glasgow Broadmarsh, Nottingham Chapelfield, Norwich Derby Eldon Square, Newcastle Lakeside, Essex Merry Hill, West Midlands Metrocentre, Gateshead Milton Keynes Potteries, Stoke-on-Trent Trafford Centre, Manchester Uxbridge Victoria Centre, Nottingham WatfordCentres run as joint ventures:Manchester, Arndale St David's, Cardiff The Mall, Cribbs CausewayIntu has been particularly badly hit by the high profile failures of the Debenhams, House of Fraser, BHS and New Look to name a few.The demise of the High Street, and now possibly the Shopping Mall, is a big worry for local councils and landlords that are losing out on rents and business rates. The virus is likely to impact footfall across the whole country. No doubt that there will be calls to tax the internet delivery giants as they are now disproportianally benefitting from the situation!

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Intu warns it could go bust unless it can raise additional finance

Prezzo’s CVA strategy appears to be working

3rd October, 2019 in Hospitality News What is a CVA (Company Voluntary Arrangement)?

I recently read an article in The Caterer , indicating that Prezzo is doing the right thing regarding its CVA being approved by its creditors - Their losses have been halved.It left me thinking, what should directors do once a CVA has been approved? Well, quite frankly, they should follow Prezzo's example. Yes, Prezzo is a big chain of restaurants but, what the directors are doing, in reality, any director can do in some form or another. So, what is it that is being done? In my view there are 3 fundamental things:Change Change ChangeOk, that is a bit flippant but lets look at it more closely.After the CVA was agreed Prezzo changed the management team by appointing Executive Chairwoman, Karen Jones. In small businesses it may not be that easy to change in this way, but management really should consider changing their structure. Perhaps responsiblities could change, maybe someone should be let go or even promoted? Change the strategy or focus on fundamentals. Karen Jones said the company was now focused on ensuring customers left wanting to return after a period where a “strategy of new openings and new concepts distracted from its mission of hospitality”. In hindsight that seems so obvious, a returning customer is worth so much more as you do not have to spend loads of money to get them back. Change your financial controls. The company's directors will need advance notice of any problems and the rigour of the process means that they must have good management information. Poor financial records is the principal reason that companies become insolvent.Investing in the future is the next big thing. Finding new money to carry out change can be a challenge. Debt for equity swaps can work in larger businesses where the lenders see an opportunity down the road. Debt relief can increase working capital by improving cashflow. In smaller businesses, creditors like to see that directors and stakeholders are putting money in. So, maybe sell some assets or try to raise other sources of finance. Lenders will lend to companies in a CVA as long as they are happy that the changes mentioned above are happening and any forecast is realistic.If you want to know how we can help businesses then give us a call on 0800 970539

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Prezzo’s CVA strategy appears to be working

Bury FC Delay CVA despite Winding Up Petition

10th July, 2019 in News What is a CVA (Company Voluntary Arrangement)? Winding Up Petition by HMRC or Other Creditor – What is the Procedure?

Manchester based football club, Bury FC, have requested more time for them to consider a rescue plan.The newly promoted club are experiencing financial difficulties and received a winding-up petition from HMRC, due to unpaid debts, adjourned at the High Court in June, for what would be the third time in a few months.The club were given six weeks to sort out their future. Steve Dale, owner, was encouraged to use the insolvency mechanism of a Company Voluntary Arrangement, to settle the club’s hefty debts. He, himself stated in April, that the club’s financial situation was ‘’significantly worse’’ than he thought, when he took over.Only yesterday (9th July), during a meeting with the Giggs Lane Club’s creditors, was the CVA decision postponed for a further six weeks. Despite their promotion to League One last season, if creditors agreed to the deal, the Shakers would face a 12-point deduction.Inquesta Corporate Recovery & Insolvency are the potential supervisors for the proposed CVA. The director, Steven Wiseglass said: ‘’The creditors have adjourned their decision pending further negotiations and are scheduled to meet again on Thursday 18th July. We continue to work closely with the club, its director and the creditors to try to ensure a successful outcome.’’Additional to the financial issues, Bury FC have been in dispute with Manchester City, who are to serve them a notice to leave their Carrington Training Ground. Manchester City allowed the Shakers to use their training ground since 2014, when they moved into a new City Football Academy. According to Manchester City Bury FC have failed to meet their obligations in the deal, regarding maintaining the buildings and pitches and numerous break ins have occurred. Once the notice is served, City would allow Bury until October, to find an alternative training facility.What is the future going to be like for Bury FC? Will they be rescued? Or will they face further challenges? What do you think? Comment below…

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Bury FC Delay CVA despite Winding Up Petition

Retailers increasingly turn to CVAs to restructure their businesses

18th June, 2019 in News Research and Statistics Retail What is a CVA (Company Voluntary Arrangement)?

UK High Street flagging as retailers increasingly turn to CVAs Figures from the British Retail Consortium (BRC) show that the UK high street and retail performance is facing difficulty. In 2016/2017 we saw a sharp decline in performance and it has been stressed that this has continued.This has been borne out in the high number of companies entering administration or seeking company voluntary arrangements (CVAs) within the last 12 months.Here, we'll take a closer look at UK high street performance and the factors causing it to suffer. Firstly, What has happened to high street performance in the UK? These are the key statistics from the latest BRC research:Overall year-on-year (YOY) retail sales fell 2.7% in May 2019 (the biggest decline on record!) Food sales dropped for the first time since June 2016, with further declines in clothing, outdoor goods and footwear 1,566 stores have had to reduce rent amounts Retail & Leisure Parks account for a third of all closures in the UK as a result of a CVA, administration or liquidation Nottingham city centre has experienced the most closures through either a CVA, administration or liquidation Birmingham holds the most closures of all UK Urban Areas. They've had 26 rent reductions and 23 closures since January 2018 Of all the Counties, Greater London saw the greatest damage, by far Footfall was down 1.4% on average over the 12 months to March 2018 As in 2016/2017 figures, the South East saw the most rapid fall in footfall There has been 140 closures and only 6 rescues of retail/leisure operators, since January 2018 To date, May 2019, 24 companies have failed, 743 stores have been affected and 31,250 employees have been impacted.How has this affected specific businesses? Several UK high street retailers have hit the headlines after being forced to take action due to falling footfall, including:Select: Closure of 14 stores, despite 50 being earmarked. Additionally, they have requested for a rent reduction L K Bennett: A notice of intention for Administration was filed, leaving 41 UK stores at risk as well as 480 UK staff affected Poundworld: Saw the closure of almost 200 stores, as they faced liquidation Mothercare: 60 store closures with 77 stores having their rent reduced by 17% Toys R Us: Entered administration after failing to find a buyer, having implemented a CVA New Look: Closed 60 stores and cut 980 jobs after agreeing to a CVA Homebase: A CVA vote, left 45 stores to cease trading with 1500 jobs at riskDespite this, six retailers have been saved. See the cases of House of Fraser, Arcadia, Office Outlet, Patisserie Valerie, HMV and Evans Cycles. What's caused this decline in high street performance? Economic and political uncertainty, falling consumer confidence, changing consumer habits and rising inflation have all contributed to the long-term decline of the UK high street.However, the most pressing factors impacting the retail sector in May 2019 were:1. Low Growth OnlineKPMG's UK retail partner, Paul Martin, stressed: “The extremely low growth online is real cause for concern, especially with almost a third of all non-food sales today being made online. This trend has continued to manifest itself over the last year and requires real focus from the retail community.”2. Business ratesIncreased business rates are potentially the biggest single contributing factor when it comes to UK high street performance.Gary Grant, founder of high street toy retailer, The Entertainer commented: "Landlords are being very realistic about their rent, but the one thing that is not negotiable are business rates."[The retail sector] is seeing many stores empty for long periods of time and the biggest issue is that [retailers] can’t open stores.''“Business rates are out of line now with retail turnover. Business rates are the real killer. Any increase in cost where you have flat and declining turnover is going to put pressure on the bottom line.''“The Government just haven’t got it. They need to take some responsibility for the high street’s decline.”Likewise, Helen Dickinson, OBE, BRC's Chief Executive, states how such rates prevent retailers from ''investing in their physical space. We have a broken tax system, which sees retailers paying vast sums of money regardless of whether they make a penny at the till, and yet the Government is failing to act.''With the UK high street continuing to suffer, it pays to know your options as a company boss. Taking difficult yet decisive decisions at the right times will put you in the best possible position to keep your company trading successfully.If you are worried about declining UK high street performance and the prospect of a CVA, contact the experts at Company Rescue today. Take a look at our site for many useful pages of advice.

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Retailers increasingly turn to CVAs to restructure their businesses

The most common complaint we hear – Accountants don’t help my company!

5th June, 2019 in For Accountants News

Our turnaround and insolvency advisors hear many things when talking to new clients but the most common complaint we hear is: "my accountants are useless, we have been asking for management accounts for months", we don't know if we are making or losing money"!.Whilst it is hardly fair to blame everyone else when things go wrong we DO have some sympathy with these views. Often accountants will counter the cry by complaining the client does not provide information on time. So there are faults on both sidesThe real problem is management of expectation. Accountants should not claim they will produce monthly management information (MI) if that is not what they re set up to deliver. If they simply produce annual accounts and tax returns, then all well and good, but don't sell the monthly service if you cannot deliver, this creates ill feeling and is poor marketing for your practice.Likewise directors should not assume, they should specify precisely what they want to be provided with and sign an agreement to deliver their side of the bargain.Well the fact is this is not an ideal world and we still get daily complaints and requests for help. We are not set up to deliver this service, we do turnaround!So the really good news is we have teamed up with The FD Centre to provide a high quality service, ranging from monthly management information provision to acting as a finance director for your business. FDC has 45 accountants with a business background right across the UK.Additionally we have a long term relationship with The Outsourced Finance Department and Insight Associateswho can handle all aspects of bookkeeping through to acting as an FD and "interpreter" for the entrepreneurs amongst you who want plain English accounting help.We are very pleased with these relationships because we often rescue companies only to see them fail when the financial reporting fails. With good MI the problems will be spotted sooner and then the board can act sooner.Banks and investors NEED quality MI to continue to support companies through these uncertain times, so if you are having problems with MI please consider getting proper advice.I strongly recommend both our esteemed colleagues. If YOU NEED good quality financial information get in touch with me.

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The most common complaint we hear – Accountants don’t help my company!

Coast Collapse into Administration

11th October, 2018 in A guide for redundant employees in administration or insolvency situations News Retail

Coast becomes the latest fashion chain to collapse into administration.Last month, Aurora, Coasts parent company, was searching for a buyer, after the business was hit hard from House of Fraser’s recent difficulties.On Thursday evening, staff were told that all of Coast’s 24 standalone stores will close, with 300 jobs at risk.PwC have been appointed as administrators.Upmarket womenswear rival, Karen Millen have brought Coast’s brand, website and concessions, as well as taking on 600 staff. They’re said to be working with the existing management team to continue to grow and develop the new business. Though this sale gives a firmer financial footing for Coast, not everything was included in the transaction, leaving 24 retail stores behind.PwC director and joint administrator, Mike Denny, states ‘’The businesses had been facing financial difficulties due to structural changes in the retail space and specifically the concession partner market, as well as a softening of demand for occasion wear.’’Coast operate a number of concessions in House of Fraser stores and so faced a multi-million-pound bill following the department stores £90m pre-pack administration sale. They were not the only fashion brand to have taken a hit, with Ted Baker, Mulberry and Quiz also being affected.

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Coast Collapse into Administration

UK SME companies run by women are less likely to go bust than companies run by men.

29th August, 2018 in Directors Duties in Insolvency and their Implications News

UK SME companies run by women are less likely to go insolvent than companies run by men.KSA Group Limited, one of the UK’s leading insolvency practitioners, has researched the UK SME market of over 4m businesses in an attempt to see if there was a gender bias on the board of companies that become insolvent.The study was designed to investigate if the insolvency rate was higher for male or female-run companies. In the first study of its kind in the UK, companies were investigated to determine the gender of the board of companies that had either gone into administration or liquidation over the last twelve months, to see if there was any correlation between gender and the general financial health of a business.Key findingsInsolvency rate is 70% higher in male run companies 8 times as many companies are run by men than women There is little difference in the industry sectors of companies run by men or run by women Only 12 out of 347 companies that went into administrations were female run.It was found that the insolvency rate of male-dominated businesses was 0.34% and those in female-dominated businesses was 0.20%. So, the insolvency rate is 70% higher in male-run businesses. Most interesting was the difference in companies that were likely to go into administration as opposed to liquidation. Administration is a more complex and costly insolvency mechanism and is more likely to be used on larger businesses which are disproportionally more male-dominated but, the fact being that out of 347 administrations in our data sets, only 12 were female-dominated.What conclusions can we draw from these findings? Robert Moore at KSA Group said; “It is apparent that the insolvency rate is higher in male run businesses, but this may be due to a number of factors that have nothing to do with whether men are inherently worse at running businesses than women. It may well be that the businesses that tend to be more likely to become insolvent due to the nature of the industry or recent economic events are coincidently run by men.”The study found that only real estate and letting businesses are overly represented in the data set of female-dominated businesses that have become insolvent. See the pie charts below which have categorised businesses into the established Standard Industry Classification.About the Study For the analysis Robert Moore (Marketing Manager) and Rebecca Dunne (A marketing intern from the University of Hertfordshire) researched Creditsafe’s database of 4m companies in the UK.In order to do the analysis, 4 data sets were collected:A count of all active companies with just 2 men on the board or a majority of 75% of the board that have been actively trading in the last 12 months > 461048 A count of boards containing just 2 women or a majority of 75% of the board that have been actively trading in the last 12 months > 56654 A count of all companies that went into administration or liquidation in male-run businesses as above > 1561 A count of all companies that went into administrator or liquidation in female-run businesses as above > 117Single person directors were excluded as were businesses with less than a 75% gender bias. The thinking behind this was that single director companies are made up of a significant amount of personal service companies that are not small businesses employing people and needing complex financial controls, but rather just a way of paying less tax. In addition, certain rule changes in the last year has led to large increases in insolvency rates of personal service companies to do with allowable expenses.The question of whether male or females are better at running businesses has been researched in America. The researchers found that there was no discernible difference. However, research done after the financial crisis did show that female-run banks were less likely to go bustClearly more studies could be done in this area to see if there really are any gender influences in business failures. Given that many business failures are caused by not acting early enough and not taking advice then the old cliché that men don’t follow instructions or ask for help in many aspects of their lives may just be true in their roles as Directors of companies.

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UK SME companies run by women are less likely to go bust than companies run by men.