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Residents’ futures safeguarded as care home bought out of liquidation

David Abbott

Liquidation

| July 22nd 2013

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Residents’ futures safeguarded as care home bought out of liquidation

A St Helens care home that faced being wound up over an unpaid tax bill has been sold out of liquidation, saving 17 jobs and safeguarding the futures of all 16 residents.

Clarencare Limited which traded as Brown Edge House Residential Home in St Helens had been faced with a winding-up petition from HMRC that would have seen it being closed down immediately and forced out of business over an unpaid tax bill.

But following advice from Begbies Traynor, the business and assets have been sold out of liquidation to Brown Edge House Limited.

The sale means the care home can remain open and its residents can continue living there without disruption.

As a result of the voluntary liquidation, HMRC has agreed not to proceed with the winding up petition and it is expected that the case will be dismissed at a hearing on July 22.

Francesca Tackie, who negotiated the sale as liquidator, said: “We only became involved after the petition had been filed, giving us very little time to find a sale and plan a future for the business before its bankers froze its account.

“Our initial attempts were to secure a company voluntary arrangement or place the company into administration, but given the tight timescale and the financial constraints placed on the business by the presence of the winding up petition, we were left with no alternative than to  pursue a creditors’ voluntary liquidation  and we were then able to sell the business out of liquidation.

“While time was against us all along, the fact that all jobs have been secured and no residents will be inconvenienced by the sale is excellent news.”

David Abbott

About the author

David Abbott

Partner

Meet our Team of Experts

David joined Begbies Traynor in 2004 originally working in one of their regional offices.  In 2006 he moved to the London office to help set up a specialist team focusing on creditor side assignments in the guise of Independent Business Reviews and Independent Solvency Reviews.  David has 18 years’ experience in the accounting profession and prior to joining Begbies Traynor has worked in a number of Top 50 London based partnerships.

As well as business reviews and independent solvency reviews, hands on turnaround assignments have also been one of David’s main focuses. This has generally been in support of high street clearing banks.

Advice You Can Trust

Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ACCA (the Association of Chartered Certified Accountants) ICAS | The Institute of Chartered Accountants of Scotland
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