Government to step in to save retailers

Government to step in to save retailers

Government expected to alter insolvency rules to reverse a court ruling that threatens troubled retailers with liquidation.

The Insolvency Service gave its
first indications this week that it could attempt to reverse the adverse impact
the Trident ruling could have on the business rescue culture in England and
Wales.

In the Trident case Justice David Richards said policy dictated that business
rates for both occupied and unoccupied properties should rank as an expense in
an administration.

The profession bemoaned the decision, warning that the upshot of the extra
cost could be businesses entering liquidation rather than being saved.

‘We are presently in the process of considering the likely implications of
the judgment with a view to assessing what remedies may be available to remove
or mitigate any consequent damage to the rescue culture,’ said an Insolvency
Service spokeswoman.

‘We would certainly not want the rescue culture fostered by the new style
administration regime to be jeopardised, if that indeed were to be the effect of
the judgment.’

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource