Simple Liquidation blog

At Simple Liquidation, we see many well-known businesses reach a crossroads, a moment when decisive action is needed to protect jobs, preserve value, and prevent a full collapse. The recent restructuring of River Island is one such example. The high street fashion retailer, famous for its trendy styles and long history, has just secured approval for a rescue plan that will save over 4,000 jobs. But the cost is significant: 33 stores will close immediately, more than 1,000 jobs remain at risk, and a further 70 sites may shut in the future. While River Island will live to fight another day, the case carries important lessons for any retail business navigating the turbulent waters of UK high street trading. River Island’s restructuring didn’t happen overnight. Like many high street brands, the company faced a sharp rise in the cost of doing business, from increased wages to soaring energy bills. Add to that the shift in consumer behaviour with more shoppers heading online and fewer visiti...

Latest reports show that almost 50,000 companies are now on the verge of collapse, struggling under the combined weight of tax hikes, inflation, and ongoing economic instability. For many directors, these challenges aren’t abstract statistics; they’re the daily reality of running a business right now. At Simple Liquidation, we’ve seen firsthand how quickly financial strain can escalate when cash flow tightens and costs keep rising. If your company is one of the many feeling the pressure, now is the time to understand your options and take control before the situation worsens. This highlights three major forces pushing businesses towards insolvency: Higher Taxes – Recent changes to corporation tax, dividend taxation, and business rates have increased the financial burden on companies. For businesses already running on tight margins, even a small percentage rise in tax can tip the balance from profit to loss. Persistent Inflation – While the headline inflation rate has eased from its pea...

Thames Water has been making headlines for all the wrong reasons. With an estimated £4 billion debt burden and failed attempts to secure new funding, the UK’s largest water supplier has been teetering on the brink of insolvency. In a proactive move, the government has appointed insolvency specialists to prepare for the possibility of a Special Administration Regime: a rare and serious step designed to keep critical services running if the company collapses. While Thames Water’s challenges are unique in scale and public impact, the way the crisis is being handled offers valuable lessons for directors of all companies. At Simple Liquidation, we believe that understanding these principles could be the difference between a smooth transition and a chaotic collapse. The Scale of the Thames Water Problem Thames Water provides essential services to millions of homes and businesses. A sudden collapse would not only risk jobs and shareholder value but could also disrupt a vital public utility. T...

If you’ve been following UK business news over the last year, you’ll know there’s been a remarkable rise in voluntary liquidations, the highest we’ve seen since the pandemic. While insolvency statistics often climb during periods of economic stress, this latest spike isn’t purely down to businesses struggling. This time, tax policy is a big part of the story. Specifically, changes to Capital Gains Tax reliefs have prompted many directors, especially those with profitable, solvent companies, to act sooner rather than later. Here at Simple Liquidation, we’ve been speaking to more entrepreneurs than ever who are keen to close down now, not because they have to, but because it makes financial sense to do so before new rules bite. The Link Between CGT Relief and Voluntary Liquidations Capital Gains Tax applies when you sell or dispose of certain assets, including shares in your own company. For years, UK entrepreneurs have been able to benefit from Business Asset Disposal Relief (previously...