We have been looking at BR for a while now and will finally be going for it next week. However, the one thing that always held us back was our business and a deal that we on the horizon.
As such we continued to trade and to try and keep things afloat using credit cards and a business overdraft and personal overdraft.
The deal would have been worth enough to clear our business and personal overdraft and to pay off our credit cards. Unforetunatly in the current climate the deal has gone pear shaped and is just not going to happed. We have therefore started to wind the business up, we've gone VR on our home and we are going BR.
My question is does this look like a BRO/BRO situation - I could not see the future and as such tried to use credit to keep us afloat - will the OR frown upon this when they see use of credit cards and draw down of overdrafts (basically used to pay bills and keep us living). I've even used the balance left on a card to draw the BR fees
Hoping for some encouraging feedback...
Tim
What doesn't kill you makes you stronger (I hope ;-)
mr e guest i did exactly the same thing and i did not get bru or bro your not the first and certainly not the last to try and save your business just be honest with your or as he will have all the financial info with him regardless of you giving him credit card / bank statements he will have done his homework im sure you will be ok all he will be looking for is any hidden cash stashed away
As you had a reasonable prospect of trading out of your difficulties it is unlikely to lead to a BRU/BRO. The OR would be looking at trading with knowledge of insolvency or trading to the detriment of creditors, so unless the potential deal was a bit pie in the sky and was reasonably attainable there should not be an issue.
In 2008 everything looked rosey - we had been working on a collection of products for launch in the second half - but then the trouble started - stores cancelled orders and the cost of the products rocketed with increased basic material and the weakening pound - we lost all but a few of our original orders but we tried to trade overseas and / or with a big UK chain to take the whole container.
It looked likeley but with retail getting even tighter in 2009 we have been told that its no longer a goer for the store who had shown interest.
Its about as plausable as it gets I hope.
Cheers
Tim
What doesn't kill you makes you stronger (I hope ;-)
Case for BRU?
Posted - 11 February 2009 : 15:36:55
