IVA
clears business debts and saves owners’
home
Economic
times have been hard for independently
owned garage filling stations, with
increased costs and squeezed margins
putting constant pressure on profitability
and cash flow. Darleys of Fleetwood
in Lancashire ran such a business, incorporating
forecourt sales with specialist Land
Rover repair services. Extra financial
problems arose for them when a major
local supermarket set up in competition.
Eventually
it became clear that the business would
have to close, but for owners Graham
and Caroline Darley the major concern
was to settle their business debts without
losing their home. Fortunately, they
were able to find expert help to guide
them through the financial maze when
they turned to Chartered Accountants
and Insolvency Practitioners
Clarke Bell.
Clarke
Bell advised an Individual Voluntary
Arrangement, whereby negotiations were
conducted with creditors to allow staged
payment of debts while assets were realised.
The freehold site of the garage was
sold, thereby releasing funds to satisfy
creditors, and the arrangement was carried
through to a conclusion.
