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As Freddie Mercury said ‘Eboracum, Easy Go. Will you cost me dough?’

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I recently took my grandson to York for the day. Unfortunately, our day trip coincided with York Races and the Third Cricket Test Match at Leeds. The trains were full going there and unpleasantly fuller on the return journey as the alcoholic intake from the day took its toll across a large number of passengers returning from each venue.

Whilst we did enjoy a good deal of Grandad/Grandson time, following museum visits we did find ourselves in that bespoke York outlet – JD Sports. After multiple tops ‘try-ons’ I finally found myself ground down by the sheer discomfort of being a sixty something in a shop filled with teenagers and coughed up for a pair of trainers which I was assured were state of the art and worth every penny of the extortionate sum I paid.

I readily recognised that I had been mugged by said Grandson through stealth rather than full and fair negotiation.

At SCDAL through the Chamber we provide business advice and support without direct cost to yourselves, on the basis that I don’t bring my Grandson with me, in which circumstance you are on your own.

I recently came across one such business where a previous business advisor had charged £750pm for support services which amounted to around 3 hours per month face to face.

Today I have received a statement from Liquidators of a business which indicates that they have raised the magnificent sum of £90,000 from the sale of the company Intellectual Property and Information and current contracts. Good news for the £152,000 of trade creditors.

Unfortunately and whilst this sale was achieved with minimal effort to one of the failed company’s directors, the sum available to distribute is expected to be much smaller.

The Administrators fees thus far have accounted for £47,000. The Valuer who assessed the price of these assets charged £11,000 and the legal fees for the transaction costs £4,600. Not much left for the trade creditors there then.

It may be comforting to know that typically the Senior Partner of the Administrators is charged out at £450 per hour with Partners charged at up to £395 per hour and even support staff at £120 per hour.

In outcome the projected return to unsecured creditors will be just 7p in the £.

This is not untypical in realisations from a failed company so don’t ever believe that a company you deal with will have sufficient assets to pay you back. With 40 years in the Banking sector I know this only too well.

Don’t get me wrong, professional support from the right quarters can be invaluable in helping businesses grow or even survive but do ensure that you are getting your monies worth. If it is your company that fails you will be powerless to prevent fees being run up under what others will state are ‘statutory obligations’. I have seen many a friendship built on trading links crumble when a company fails and the ‘professionals’ move in.

We at the Chamber not only provide advice to businesses both existing and start- ups on a no fee basis but can also offer funding for your business via our own loan fund delivered through South Cheshire Development Agency.

Give me a call on 07788268852 and I will be happy to chat anything through with you. Hopefully my Grandson won’t be with me at the time as it could turn out costing you, where a packet of M & Ms and a can of Irn Bru just will not cut it.