Retail Gazette’s Post

Winding up orders were made against five companies that form part of the Sk:n Group, the specialist skin care operator earlier this week and the business has ceased trading. The Official Receiver has been appointed as liquidator of the five companies. The nature of Sk:n’s business model is such that a large number of customers have paid significant deposits for upcoming treatments that are likely to no longer be carried out by virtue of the winding up orders. These types of situations always call into question whether consumers need or should be offered more protection for deposits. The default position is that customers will be unsecured creditors in respect of deposits for treatments not carried out. Depending upon the outcome of the liquidation it may be that a buyer is found for the business and assets of the group, although the fact the business has ceased trading makes this potentially more challenging. A buyer could, in order to preserve goodwill, carry out these treatments but would be under no obliobligation to do so. Consumers may be able to reclaim deposits is payment was made via credit card under section 75 of the Consumer Credit Act and it may be possibly if payment was via debit card although there is no legal obligation and customers should check with their own bank. How could you protect deposits further? There have been calls to make deposits preferred creditors which would see them rank ahead of unsecured and floating charge creditors in the order of priority of payment. This may not necessarily protect them though as this is only relevant if there are sufficient realisations to distribute funds to creditors in the first instance. There is an element here of shutting the door after the horse has bolted. If consumer deposits were to really be protected then it is legislation and changes around the use of said deposits that is required. Safeguarding and segregation of deposits from general trading funds so unfulfilled orders can easily be identified and returned to customers would seem the best way to protect consumers which significant consequences for breaching these rules. #insolvency #businessrecovery #restructuring #turnaround #finance #business #consumerrights #accountant #london

May was a solid month at C4 but we are hoping for bigger and better in June to round off the quarter on a high 📈 As ever, I like to share a breakdown of transactions that we have facilitated the month before – to provide an ongoing reminder of the types of businesses and requirements that we are supporting: 👕 Textile Manufacturer – £50k DGF: A seasonal family-run business required a cash injection to help support supplier payments, at the tightest cashflow point of the year. Seeing the positive trend in the filed accounts, continuing to the MI, we lent quickly to help support these pressing payments. 🚌 Transport Business - £35k DGF: We were introduced to a transport business which urgently required funds to help to pay for repairs on a vehicle that they were looking to sell to raise cash in the business. ✈ Aviation Company - £50k DGF: This case was a classic… the business had expensive short-term borrowing with a fellow competitor which it was looking to refi whilst also in need of cashflow support since their revenue had grown by nearly 400% YoY. Term loan element was utilised to consolidate the borrowing and Flexible Facility to help smooth the peaks and troughs of their cashflow. 👨⚖️ Solicitors Firm - £30k DGF: A legal practice required additional cashflow support to help cover their overheads whilst they awaited payment on their WIP. Having had sight of the strong financials and unequivocal growth trajectory, we helped to support this business with a Dual Growth Funding. 🛑 Signage Supplier - £50k DGF: This long-established business required additional cashflow support to help fulfil new orders recently received. Increasing levels of work by constant supplier limits required further supplier payments to be made on a proforma basis. Not working with Credit4 yet… what are you waiting for?! Further information on our products available on our website (included below); E: nickmcdouall@credit4.co.uk M: 07395 885452

Motor finance lenders could be left with a £28billion compensation bill related to the historical mis-selling of loans, according to an investment bank's latest forecasts. Keefe, Bruyette & Woods (KBW), which is owned by Stifel, has raised estimates on the liabilities facing numerous lenders following the Court of Appeal's recent Hopcraft judgement.

There are a number of routes you can take when looking for car finance, but the two most popular are Hire Purchase, and Personal Contract Purchase (PCP)💰 But how do they work and what are the main differences? The CarMoney ninjas explain🥷... #HirePurchase #PCP #CarFinance #CarFinanceExplained https://bit.ly/3ZwaV9z

Last month at STAC Business, we faced a unique challenge: A client needed to upgrade their fleet by acquiring three commercial vehicles valued at $170k in total. Each vehicle was coming from a different dealership on different days, which complicated the financing. Richard Becconsall, our expert in Equipment Finance, crafted a streamlined finance solution with a premium lender. He arranged a Commercial Low-Doc package with 5-year terms, 0% balloon, and flexible deposit options between 20-30%. To manage the logistical challenge, Rich secured a financing "limit" under the lender's streamlined policy. This innovative approach allowed us to draw down separate loans as each vehicle was ready, eliminating the need for multiple approvals and mountains of paperwork. This strategic financing setup meant that our busy business owner client could focus on what they do best, without the hassle of traditional finance processes. At STAC, we believe finance should work on your schedule, not the other way around. We keep it simple, smart, and responsive—just like your business needs to be. Mark Trayner Dale Sparke Leigh Blain Darren Bobby Stuart Small Jordan Webb Alex Stalder Max Tyers Anthony Mack Kendra Bullock #STACFinance #CommercialVehicles #FleetFinancing #LowDocLoans #BusinessGrowth #StreamlinedFinance #AssetFinance #NoFussFinance #AussieBusiness #FinanceSolutions #BusinessFleet #OnTheRoad #VehicleFinance #SmartFinancing #InvestInYourFleet #ReadyToRoll #FinanceWithSTAC #TrustedLenders #FinanceMadeEasy #GearingUp #CommercialLending #EfficiencyInFinance #DriveYourBusiness

🚐 Insolvency Update: Tango Caravans 🚨 What Went Wrong? Tango Caravans, a Melbourne-based business, went into liquidation a few months ago, leaving 85 creditors owed $3.2 million. Alarmingly, 60 customers, many with deposits up to $90,000, were left with nothing to show for their dream caravans. Customer funds were used to cover operating expenses instead of being safeguarded for manufacturing costs. 🔍 Behind the Numbers Liquidators uncovered that Tango had been trading insolvent since at least March 2023, accumulating $2.5 million in debt over 18 months. Recoveries are slim, with only three caravans secured as assets. The sole director is now under investigation by Consumer Affairs Victoria. 🚩 Takeaways for Business Owners It’s critical to keep an eye on cash flow and act quickly if financial troubles arise. Ignoring red flags can leave businesses and customers vulnerable. Seeking guidance early can help protect everyone involved. If your business is facing challenges, get in touch to discuss the best way forward. #tangocaravans #insolvency #businesscollapse

Rite Aid is close to reaching a deal on a post-bankruptcy financing package, with a group of lenders preparing to provide interim financing while the company remains in Chapter 11, attorneys said. The pharmacy chain received court approval in late March to begin voting on a bankruptcy plan that would eliminate $2 billion in debt and hand over the company's equity to a group of lenders including investment funds Brigade Capital and HG Vora. But Rite Aid has struggled to finalize some of the deal's details, delaying its planned exit from bankruptcy by over a month. Rite Aid is now close to a final deal with its lenders and expects to seek court approval of its bankruptcy restructuring in late June, Rite Aid attorney Aparna Yenamandra said at a hearing in bankruptcy court in Trenton, New Jersey. Rite Aid filed for bankruptcy in October, seeking to address its high debt, close underperforming retail locations, and resolve lawsuits by state and local governments alleging it helped fuel the deadly U.S. opioid abuse epidemic. Read more: https://reut.rs/4dVOPCM

Are you ready for some gossip? Meet Nancy. A client I met in my line of credit. Nancy sought a loan of Kes 3M, backed by her 2016 Range Rover Vogue. The repayment term was 12 months, and all standard procedures were meticulously followed. For the initial four months, Nancy managed her repayments smoothly. However, after the fifth month, she defaulted, triggering our recovery process. When our auctioneers attempted to repossess the car, they encountered an unexpected hurdle. Nancy's husband emerged, claiming ownership of the vehicle. He asserted that Nancy entered his E-citizen Tims account and transferred the car to herself without his consent. He presented compelling evidence, proving he had purchased the car. Resolving this dispute required legal intervention. We obtained a court order and enlisted police assistance to reclaim the vehicle. This ordeal underscored several crucial lessons: 1. Spousal Consent Always ensure both spouses consent to loans, as even if one party owns an asset, the other may claim ownership.    2. Chattel Registration Register securities on e-citizen for streamlined recovery processes.    3. Document Verification  For high-value assets like luxury cars, request key documents to verify ownership.    Don't allow lending to devolve into legal battles. Implement these measures to safeguard your investments effectively. Have you ever encountered unexpected challenges when securing loans against assets? Share your experiences below P.S . Watch out for our newsletter that premiers this afternoon. You don’t want to miss inspiring finance and real estate stories. #LendingLessons #RiskMitigation #InvestmentProtection #FinancialSecurity #LoanManagement #creditmanagement #Loanprocesses #microfinance #linkedinkenya

Further to our earlier commentary on the Financial Conduct Authority’s review of historical #motor #finance sales and broker-dealer #commission arrangements with #lenders, the Courts have ruled in favour of #consumers resulting in bigger reserves being set aside in anticipation of significant #redress schemes