It has been a difficult few years for many organisations thanks to the pandemic, the rise in the cost of energy and general economic uncertainty. This has resulted in many businesses going into liquidation and closing for good. One of the businesses that have currently fallen victim to this economic turmoil is Forever Unique, which announced recently that they have gone into liquidation

The Situation with Forever Unique

Forever Unique is a retail company that has recently announced that it will be going into liquidation. Begdies Traynor, who has been working closely with the company, revealed that, although they have explored several different possible resolutions, there were simply no other options but to move towards liquidation.

The organisation was founded by Seema Malhotra, who appeared on The Real Housewives of Cheshire. The company was trading as normal, and then confirmed it would be looking at going into liquidation.

The BBC recently approached the company asking for some kind of comment. Amie Johnson, the insolvency director working on behalf of Begbies Traynor, commented, “A combination of the economic climate, inflation and issues in recovering from the pandemic have resulted in these circumstances. Creditors have been informed, and we will keep them up-to-date with progress.”

What is Liquidation?

With Forever Unique announcing liquidation, it is worth establishing what is actually meant by this. When a company enters liquidation, it is instigating the process of working with an insolvency practitioner and bringing said business to a close. This usually occurs when a business becomes insolvent, which means it is no longer in a position to pay its debts. When the company’s operations are brought to a close, its assets are sold and then the money from those assets is used to pay off liabilities owed to creditors. This is what will happen to Forever Unique; remaining stock, office space and stocks and shares will be sold off, and the money made will pay off different creditors, shareholders and staff as much as possible.

What Are Some of the Biggest Issues Facing Businesses at The Moment?

Organisations going into liquidation at the moment, unfortunately, is not unheard of. As discussed above, several factors which are impacting organisations and making it so that more need to close. These issues are touched upon by Forever Unique, who stated, “economic climate, inflation and issues in recovering from the pandemic,” were driving factors. So, with these in mind, what are some of the biggest problems that will be an issue for businesses in the second half of 2023?

  • Supply Chains

There are a lot of supply chains that will likely continue to be disrupted thanks to rising costs. These will make it harder for organisations to access affordable and fast delivery of materials. There will also be an increase in labour shortages which will continue to be a problem. With rising costs, a lot of people are starting to leave their current roles so that they can seek out better opportunities.

There have also been disruptions in international trade which will negatively impact how businesses operate. A lot of countries outside the UK are suffering from supply shortages and as such, deliveries to the UK become less feasible.

  • Rising Energy Prices

Another one of the biggest challenges which are currently facing lots of different businesses is the consistent increases in energy prices. The price of energy has been rising sharply throughout the past year or so and this is only expected to increase more throughout the rest of 2023. Employers don’t have much of a say in this, they can look for cheaper options and head over to comparison sites, but the fact is that offices need to be heated in winter and cooled in summer, so energy prices are going to have to be paid. With rising costs, many businesses are struggling to keep up-to-date with payments.

  • The Cost of Living Crisis

Throughout the UK, many employees are consistently struggling to keep up with the constantly rising costs that are affecting people. The costs of essentials that everybody needs in their day-to-day life, such as food, are rising the fastest they have in the past 45 years. As such, it is hardly a surprise that people are struggling to get by on their regular wages. Budgets are getting tighter, and spending habits are cracked down on. Businesses suffer from this as people are not spending at the same rate they used to; instead, they are becoming a lot more reserved with money, so businesses are seeing a dip in profits as a result.

  • Constant Inflation

Inflation is another massive challenge facing businesses across the UK at the moment. There are a lot of banks who say that inflation rates are likely going to slow down towards the back end of 2023, but people remain speculative, and until actual reduction can be seen, businesses will continue to suffer. World economies at the moment are adapting to some of the prominent economic changes to better reduce inflation; however, organisations are still worried about whether or not this will be enough to avoid them closing down.

Do You Need Help with Liquidation?

If, like so many organisations at the moment, you find yourself struggling and liquidation is on the horizon, you will want to speak to specialists who will work with both your interests and the interests of your creditors in mind. At Leading UK, we pride ourselves on being able to offer expert advice and put that advice into practice when we work on behalf of different organisations. If you need any kind of assistance or have any further questions you would like answered, do not hesitate to get in touch.