Giving confidence to the directors that a pawnbroking franchise could be saved

Gore and Company was approached by the directors of a business operating a pawnbroking franchise that had run into severe financial difficulties. A review showed the business was carrying an insurmountable debt burden and was trading insolvently.  However advice and assistance allowed the franchise agreement to be renegotiated leading to the business being saved.

The business review revealed the company, located in Reading, was trading insolvently both in terms of its liabilities exceeding its assets and that it was unable to service its debts as and when they became due.

The directors had decided to liquidate the business as the extent of the financial problems were made clear. However with ongoing support and advice from Gore and Company the directors were able to renegotiate the franchise terms and obtain deferment of some financial obligations under this contract. This ultimately allowed the business to be rescued.  Gore and Company advised the directors of their responsibilities at every stage, particularly with regard to personal guarantees to both the bank and lease-hire agreements

Please note that the above is provided for illustration purposes only and comprises a short view of extremely complex insolvency and other legislation. This is a complicated area and specific advice must be sought before undertaking any course of action or before refraining from any course of action. Gore and Company takes no responsibility for any loss incurred to or by any person who either acts or refrains from acting on the basis of the above or of any other item published on this website. The above note may not be reproduced without the prior written consent of Gore and Company.

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