Insolvency advice for Bookmakers: Close and Rescue options

Bookies have faced numerous problems lately, but you can shield your business from overwhelming debt. 

Start by getting advice from a licensed insolvency practitioner. They’ll guide you on closing or saving your company. In business rescue and recovery, there’s no universal fix. Depending on your betting shop’s financial and operational status, various options could be on the table. Consider what’s best for your shop’s future viability.

How will the liquidation process help you to close your bookmaking business?

If you think your betting shop can’t be saved, you might be looking at how to shut down the business while handling its debts to creditors.

A Creditors’ Voluntary Liquidation (CVL) is a formal process directors start to wind up a company when it can’t pay its debts. It brings the company’s affairs to a tidy close. 

If your company won’t bounce back, a CVL usually beats compulsory liquidation. It also helps you meet your duties as a director of an insolvent company.

If you want to rescue your business from cash flow problems, consider formal and informal insolvency options. They can quickly improve your company’s situation and secure its financial stability. Options include:

1.  HMRC Time to Pay Arrangement (TTP) 

HMRC provides businesses with extended time to settle tax and National Insurance debts if they require assistance. If they believe your company can overcome financial difficulties, a Time to Pay arrangement can grant up to 12 months to clear your tax arrears.

2. Company Voluntary Arrangement (CVA)

A Company Voluntary Arrangement (CVA) is a formal insolvency process that assists viable businesses in handling their debts to creditors while maintaining operations. It acts as a structured payment plan agreed upon by a financially troubled company and its creditors.

Usually spanning 3-5 years, a CVA restructures company debt into a manageable single monthly payment, making it affordable and sustainable.

3. Company Administration 

If creditors are pressuring you for payment, company administration offers the breathing room necessary to devise a recovery plan. During a moratorium period, creditors are barred from pursuing legal action, and any extra interest and fees on existing debt are put on hold while a path forward is devised.

4. Negotiate for debts 

Negotiate with creditors to settle debts for less than the total owed. Creditors might accept a reduced amount rather than risk getting nothing if the business goes under. Effective communication and negotiation skills are essential for reaching mutually acceptable terms with creditors.

5. Alternative Finance

With the diverse array of alternative finance products today, there might be a fitting option for your business. You could access a lump sum to settle creditors or regular working capital to enhance cash flow stability and security.

Seeking Assistance: How Can Bookies and Betting Shop Owners Navigate Rescue and Recovery?

If you’re a bookmaker or betting shop owner worried about your business’s viability, Vanguard Insolvency offers professional help. 

We’ll outline your options thoroughly, ensure you understand the consequences, and assist you at every step. To learn more and schedule a free same-day consultation, contact our expert team. We operate from over 100 offices nationwide.