Close my Pub
Serious labour shortages in the pub sector, along with lowered consumer spending, are compromising growth and jeopardising survival for some pub businesses. It is a balancing act between increasing prices to offset rising operational costs but without discouraging trade.
If your pub has slipped into insolvency and you need to close your company down it is important to prioritise your creditors at the earliest stage. If this is the case, our team are here to help you close your pub by entering the official procedure, Creditors’ Voluntary Liquidation (CVL).
Liquidation is one way to close your pub business and can also be the best option if it is financially healthy. Maybe you want to retire, for example, or you feel the time is right to leave the industry. Alternatively, company dissolution can be an appropriate closure method for solvent businesses.
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How do I liquidate my pub?
Liquidate my insolvent pub: Creditors’ Voluntary Liquidation (CVL)
Creditors’ Voluntary Liquidation is the procedure to use if you have insufficient funds to repay your creditors. It means that the business closes down in an orderly manner and you fulfil your legal obligations to creditors by prioritising their interests.
During a CVL your pub assets are placed for sale at a liquidation auction and the proceeds are used to repay creditors. A further benefit of entering this process is that misconduct allegations are less likely to be made against you as a director as you have taken the initiative by voluntarily placing your pub into liquidation.
Liquidate my solvent pub: Members’ Voluntary Liquidation (MVL)
If your pub business can pay all its creditors you may be eligible to enter the solvent liquidation process called Members’ Voluntary Liquidation. This ultimately closes the pub down by removing it from the register at Companies House.
Initially, the appointed insolvency practitioner liquidates your business’s assets and completes all the necessary administrative tasks required by the process. Due to its tax efficiencies, MVL is a highly advisable closure method if your business’s retained profit levels exceed £25,000.
How do I close my solvent pub if liquidation is not suitable?
You can close your pub via a process called voluntary dissolution, also known as voluntary strike-off. This is generally suitable for businesses with lower levels of distributable profits – typically below £25,000 – but it is only appropriate if you can pay all your creditors.
Voluntary strike-off costs only £10 so it is an inexpensive way to close your pub but there are risks involved for you as a director if you fail to follow the procedure correctly. Initially, you have to formally declare your business solvent so it is vital to make sure that all your creditors can be paid.
If a creditor makes a claim after the business has closed, it can be restored to the register. You may have to enter insolvent liquidation as a result, and this would trigger an investigation by the liquidator.
Company Closure helps pubs and other hospitality businesses to close their doors using the most appropriate process. Please contact our expert team to arrange a free consultation – we work from offices around the country.
25,000+ Company Directors Supported – Partner Led Service
At Company Closure we have a nationwide team of licensed insolvency practitioners and company closure experts here to help you understand your options. Whether your company is solvent or insolvent, there is a closure method out there to suit you.
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