BusinessBusiness RecoveryFormer Haines Watts unit heading for CVA

Former Haines Watts unit heading for CVA

Top 20 firm's former business unit, now called Sixonethreeone, has debts of more than £4m and faces a company voluntary arrangement

A former business unit of top 20 firm Haines Watts Group is heading into a
company voluntary arrangement (CVA) with debts of more than £4m.

The unit, a grouping of Haines Watts practices previously called HWCA Ltd,
was formed in 2005. But it struggled. Last August HWCA’s practices were
transferred back out to Haines Watts’ regional businesses through management
buyouts. The remaining shell, renamed Sixonethreeone, was left with more than
£4m in assets from the buyouts.

Total liabilities will exceed the assets when the costs of entering
Sixonethreeone into a CVA are taken into account. Accountancy Age understands
that HMRC is owed £1.9m by Sixonethreeone, plus a further £1.9m to former
directors.

Geoffrey Fairclough, chairman of Haines Watts Group has stressed that
Sixonethreeone’s impending CVA would have no impact on the firm.

“The issues at Sixone­threeone have no impact on Haines Watts’ businesses,
which all continue to trade normally,” said Fairclough.

Sixonethreeone also faces a winding-up order from former director Manish
Patel for £73,000 to be heard in the courts on 24 March. However, it is expected
that a creditor meeting to approve the CVA will take place before that date.

The most recent set of accounts filed by HWCA Ltd prior to changing its name
to Sixonethreeone, was on 31 March 2008.

A statement in the HWCA accounts claimed 2008 was the first year to show a
profit on its balance sheet due to an injection of more than £2m as share
capital and converting £2.5m of borrowings to a five year loan.

The group consists of over 60 owner-managed firms through­out the UK.

Further reading:

Tenon
snaps up Haines Watts Business Recovery

Related Articles

AlixPartners advises Store Twenty One on CVA deal with creditors

Accounting Firms AlixPartners advises Store Twenty One on CVA deal with creditors

1y Richard Crump, Writer
BIS launches insolvency consultation

Business Recovery BIS launches insolvency consultation

2y Chris Warmoll, Writer
KPMG appointed as CVA ‘supervisor' to historic department store

Business Recovery KPMG appointed as CVA ‘supervisor' to historic department store

2y Chris Warmoll, Writer
BHS landlords query long-term future of distressed retailer

Business Recovery BHS landlords query long-term future of distressed retailer

2y Chris Warmoll, Writer
KPMG prepares CVA for beleagured BHS empire

Business Recovery KPMG prepares CVA for beleagured BHS empire

2y Chris Warmoll, Writer
KPMG brought in as struggling BHS looks to cut costs

Business Recovery KPMG brought in as struggling BHS looks to cut costs

2y Chris Warmoll, Writer
CBW appointed liquidator to Hampshire windows manufacturer

Accounting Firms CBW appointed liquidator to Hampshire windows manufacturer

2y Richard Crump, Writer
FRP Advisory agrees Marussia CVA with creditors

Business Recovery FRP Advisory agrees Marussia CVA with creditors

3y Richard Crump, Writer