For over three decades, a beloved local fresh food shop served its community offering fresh produce with a friendly service. The shop enjoyed steady year-on-year growth, becoming a staple in the area. However, the recent economic downturn presented unprecedented challenges. Rising costs, reduced consumer spending, and increased competition from large supermarket chains took their toll. Despite these difficulties, the owners, a couple now in their late sixties, managed to keep the business afloat without compromising on quality or service. After much reflection, they decided it was time to retire and close the Shop while ensuring all financial obligations were met. To facilitate this, they sought the expertise of Parker Walsh to conduct a Members Voluntary Liquidation (MVL).
The owners approached Parker Walsh to discuss the most effective and responsible way to wind down their beloved business. An initial meeting was held to understand the financial position of the Shop, assess the assets and liabilities, and determine the most appropriate strategy for liquidation. Given that the company was solvent and capable of paying its debts in full, an MVL was deemed the best course of action.
Parker Walsh began the process by conducting a thorough financial review. This involved valuing the shop’s assets, including unsold inventory, equipment, and the property itself, while also identifying all outstanding liabilities. With the financial landscape mapped out, Parker Walsh guided the owners through the following steps:
Throughout the process, Parker Walsh provided invaluable advice and support, offering several key recommendations to ensure a smooth and efficient liquidation:
The Members Voluntary Liquidation of the Shop, expertly managed by Parker Walsh, allowed the owners to retire with peace of mind. Despite the challenges posed by the economic downturn, the process ensured all debts were paid, and surplus funds were efficiently distributed. The Shop may have closed its doors, but its legacy of community service and quality produce will be remembered fondly by the local community.
I am Molly Monks, a licensed insolvency practitioner at Parker Walsh. I have over 20 years of experience helping directors with the financial struggles they may face. I understand that it can be overwhelming and stressful, so I offer practical straightforward advice, which is also free and confidential. I spend time with directors to get a good understanding of their business and their goals, therefore providing the best tailored advice possible.
Email: molly@parkerwalsh.co.uk
Phone: 0161 546 8143