Kodak may well have sought insolvency advice recently, the company has suffered financially over recent years, competitors have quickly over took the once market leader, as they have moved forward increasingly with the digital age. Kodak recently filed for bankruptcy protection, to allow it time to assess its position without having to face looming creditors and hopefully take the essential and necessary steps to allow it full corporate recovery.
Corporate recovery, bankruptcy and the main reasons companies hit trouble
Corporate recovery and insolvency advice could benefit as many as 80% of UK businesses, this is the percentage of companies that face some form of financial difficulty in their life cycle. There are a million and one factors that can affect a company’s financial well being, which can include anything from the external issues of a poor economic climate, to a poor business strategy. Here are the top causes behind business bankruptcy.
Use insolvency advice as prevention not just a cure
Many businesses have been faced with seeking insolvency advice as the tough economic climate forces many companies out of business or at the very least into financial crisis.
Official statistics from the Insolvency Service revealed that during 2011, there was an increase of between 2% and 4% of businesses going into liquidation, when compared to the year before. The figures for UK businesses were in contrast to that of individuals.
Misleading creditors might not be a good idea!
If you’re chasing recalcitrant company debtors this may be a useful case to have up your sleeve. For directors of debtor companies it’s a clear statement that they can’t simply disregard their creditors and hide behind the security of the limited liability of their companies.