headway F2KRf QfCqw unsplash scaled

Steps for Liquidating Your Events Company

The coronavirus pandemic has had a devastating impact on the events industry, causing severe financial hardship that continues today. While the Covid-19 vaccine rollout offers hope for a full economic recovery, it may be too late for events companies that have been unable to operate for over a year. 

The constantly shifting restrictions on events attendance, such as weddings, have made it difficult for companies to plan and has created an uncertain business environment for companies of all sizes. This has led to a chain reaction of cancellations and postponements for individual artists and performers, freelance tour managers, actors, catering staff, and venues.

Seek Expert Assistance for Events Companies in Liquidation


It’s essential for events sector companies to seek professional liquidation guidance to understand their options and fulfil their legal responsibilities to creditors. When a company becomes insolvent, directors must prioritise their creditors’ interests and follow the strict regulations of insolvency in the UK, which requires immediate cessation of business operations. 

Insolvency practitioners (IPs) will assess the possibility of rescuing the company. In the event of liquidation, it is important for directors to understand the process and its outcome. Despite the dire financial situation, there may still be options for the events company. Before exploring alternatives, let’s examine what takes place during liquidation.

Liquidation of an Events Business


If liquidation is the only option for your events company, then you need to initiate a Creditors’ Voluntary Liquidation (CVL), which is a formal process managed by licensed insolvency practitioners. The outcome of this process is the closure of your business.

By opting for voluntary liquidation, you are taking steps to shield your creditors from further financial harm while also fulfilling your legal duties as a company director. During the liquidation process, all assets of the business will be sold to repay creditors, and any outstanding debts will be forgiven.

It’s important to note that if you have provided a personal guarantee for any business loans, you will be responsible for repaying the lender. If you are unable to repay the debt, you may be eligible for director redundancy.

Claiming Director Redundancy in the Events Industry


If you have been employed under a contract for two or more years and receive a regular salary through PAYE, you may qualify for director redundancy and other statutory benefits. 

InsolvencySupport.co.uk can offer advice on your eligibility for these benefits, which on average amount to £9,000. This could help cover the cost of the Creditors’ Voluntary Liquidation (CVL) process or repay a personal guarantee loan.

Can I Salvage or Transfer Ownership of My Events Business?


If your events company is facing financial difficulties, there may be alternative options to liquidation that can help rescue the business. These alternatives include:

Renegotiating debt: You may be able to renegotiate the terms of your debt with creditors. If these negotiations are formalised in a Company Voluntary Arrangement (CVA), the agreement will be legally binding. There’s also a Fast Track CVA option for eligible companies that expedites the process.

Company administration: Placing the company into administration can provide a temporary reprieve from creditor pressure and give you time to create a plan. This option includes an eight-week moratorium during which no legal action can be taken.

HMRC Time to Pay scheme: If your events company has a good payment history with HMRC, it may be eligible for a Time to Pay arrangement, which gives you up to 12 months to pay your tax arrears and reduces the risk of a winding up petition from HMRC.

Selling the business: If your company has valuable assets or is seen as viable, you may be able to sell it in its entirety or sell the assets to a third party. This would allow the company to continue operating under new ownership and preserve jobs under TUPE regulations.

If liquidation is your only option, InsolvencySupport.co.uk can provide professional and reliable liquidation advice. They have licensed insolvency practitioners who can provide a free, same-day consultation to help you understand your options.

× Need help, speak to us.