I think we are approaching a “perfect storm” of Brexit, Covid-19 and the fallout of the recent flooding, which could have a detrimental impact on the cashflow of businesses and sole traders. In addition, individuals may well be effected if they have to self isolate and/or have to look after children, whilst potentially only receiving SSP. As always, the earlier people and/or businesses take advice, the more options there are available. The attitude of creditors is also going be vitally important, as their support will be needed if a business is to be rescued and ultimately this will be dependent upon whether the creditors themselves are struggling.
So far this week, we have seen a noticeable increase in insolvency enquiries and I have already been advising a business in the leisure and tourism industry, as well as a manufacturer/supplier of high end food products. I would predict that those which will find it particularly difficult in the coming weeks will be publicans, restaurants, hotels, gymnasiums as well as the long suffering high street. However, the disruption already caused and predicted, could easily effect most businesses, especially when staff are absent or unwell.