Company liquidation is almost never the sole fault of the company owner, according to a recent memo from the European Commission.
The Commission is seeking to make sure that entering into company liquidation once does not prevent people in EU member states from launching new businesses later.
In part, this is because the lessons learned from going through the company insolvency process first time around often help these people to make a success of their next venture.
But it is also partly because it is simply not the fault of the entrepreneur in the vast majority of cases.
According to the Commission’s memo, 96% of company insolvency proceedings – 24 out of every 25 bankruptcies – can be put down to ‘objective problems’ such as late payment by clients.
The Commission adds that, in many cases, acquiring a going concern is a preferable option to starting a new business from scratch.
If your business is suffering due to objective problems outside of your direct control, speak to us now for administration advice, and we can commence corporate recovery to try and save your organisation before it is too late.