The crucial Christmas trading season can be make or break for some retailers. As the festive season gets underway, retailers face intense competition to win sales as consumers seek out the best deals.
Top retail sources claim that the high street will be faced with “the toughest Christmas ever” as traditional stores struggle to cope. However, it seems that consumers are spending their hard earned cash on-line with internet stores where figures show a sharp rise in sales. Experts say that internet sales will easily hit £20 billion in 2019 which is creating a black hole in high street sales.
With Christmas trading in full swing we would advise a struggling business owner that now might not be the best time to sell or close the business. However, it must be noted that unless certain procedures are followed businesses could find themselves in hot water and found guilty of wrongful trading or even fraudulent trading.
Wrongful trading occurs when businesses continue to operate when they ultimately know there is no prospect of paying ALL debts as they fall due. If this is the case the business directors could become personally liable for all of its debts from the date wrongful trading was established. Choosing what suppliers to pay over other suppliers is seen as fraudulent trading and can be a criminal offence. With our help and guidance these situations could be avoided all together.
If your business is struggling and you are not convinced that Christmas trading is going to be profitable you probably should get professional advice. We may be able to help you trade through the problem or trade whilst the business is sold as a going concern. At the very least you may be able to benefit from the busiest trading period.
Click here to see our useful guide to business recovery where we talk about the symptoms of business stress, the realities of insolvency and take you through some of our case studies showing how successful we are at what we do.
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Lynn Gibson
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