Preferences and Transactions at Undervalue in Company Liquidation
When a company enters liquidation in the United Kingdom, the liquidator has a legal duty to investigate the company’s financial affairs and review transactions that took place before insolvency. One important part of this process involves examining whether directors or the company transferred money or assets in a way that...
The Rise of Zombie Companies in the United Kingdom
In recent years, the term “zombie company” has become increasingly common in discussions around the UK economy and corporate insolvency. While many businesses survived the financial pressures caused by the pandemic, inflation, supply chain disruption, and rising borrowing costs, a growing number are now operating in a financially fragile state....
The Difference Between Cashflow Insolvency and Balance Sheet Insolvency
In the United Kingdom, insolvency is not always as straightforward as a company simply running out of money. Under the Insolvency Act 1986, a business may be considered insolvent in different ways depending on its financial position and ability to meet obligations. Two of the most important legal concepts in...
Why UK Company Insolvencies Are Still Near 30-Year Highs in 2026
Despite inflation easing compared to the sharp increases seen in 2022 and 2023, company insolvencies across the United Kingdom remain stubbornly high in 2026. Many businesses expected financial conditions to improve once inflation started slowing, yet insolvency figures continue to reflect severe pressure across multiple sectors of the economy. According...
Can Directors Be Investigated After Forced Liquidation?
When a company enters forced liquidation (also known as compulsory liquidation), it is usually the result of serious financial distress and creditor pressure, often led by HMRC. For directors, one of the biggest concerns at this stage is whether their actions will be investigated and what the consequences could be....
Why Directors Are Choosing Controlled, Voluntary Closure Instead of Forced Liquidation
In today’s challenging economic climate, more UK company directors are facing difficult decisions about the future of their businesses. With rising costs, increasing pressure from HMRC, and tightening cash flow, insolvency is becoming a reality for many. However, one clear trend has emerged: directors are increasingly choosing controlled, voluntary closure...
Why Creditors’ Voluntary Liquidations Are Outpacing Administrations
In recent years, the balance between different corporate insolvency procedures in the United Kingdom has shifted. While administration was once widely seen as the primary
Why Corporate Insolvencies Remained High in 2025 Despite Economic Stabilisation
At first glance, 2025 appeared to offer signs of economic stabilisation in the United Kingdom. Inflation eased compared to its post-pandemic peak, supply chain disruption
Why UK Furniture Brand Slzzp Entered Administration
The entry of UK furniture brand Slzzp into administration highlights the continued financial strain facing retailers operating in a challenging and evolving market. While furniture
Why the Centre for Contemporary Arts in Glasgow Entered Liquidation
The Centre for Contemporary Arts (CCA) in Glasgow has long been regarded as one of Scotland’s most important cultural venues, providing a platform for visual
Who Pays for Staff Redundancy When a Business Goes into Liquidation?
When a business enters liquidation, one of the most pressing and sensitive issues is what happens to employees. For many directors, concerns around staff redundancy,
What Happens When I Owe Money to My Own Company?
It is not uncommon for directors or shareholders to owe money to their own company. This situation often arises through director’s loans, drawings taken in
