UK Liquidators: Support for Tier 2 businesses in Cambridgeshire

Published: 14:20, 04 December 2020

| Updated: 15:24, 04 December 2020

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The government has introduced a new tier system to combat the spread of coronavirus and reduce its devastating effect on public health, but many businesses are struggling to meet the ever-changing demands.

Adapting to new requirements at short notice has been a feature of 2020, and although relief may be in sight for 2021, it is likely to be too late for some companies experiencing irreversible financial damage.

Businesses in Cambridgeshire now face tougher trading restrictions, having been moved from Tier 1 to the new Tier 2 ‘High Alert’ level.

The implications are significant for business owners in Cambridge and the county as a whole, so what do Tier 2 restrictions mean in practice?

What does Tier 2 mean for your business?

What does Tier 2 mean for businessesin the Cambridge area?

Non-essential shops, hair, beauty, and nail salons can open
Pubs and bars must close unless they serve alcohol with a substantial meal
Businesses can sell food and drink for consumption away from their premises, via delivery, takeaway, drive-through, or click-and-collect services
Outdoor and indoor entertainment can continue with limited attendance
Indoor sports, activity, and fitness venues can remain open as long as they are Covid-secure and social distancing measures implemented
Wedding ceremonies and receptions can take place with a limit of 15 attendees
Nightclubs must remain closed by law

If Cambridgeshire stays in Tier 2 over the festive period, this level of restrictions will remain in place.

Businesses have faced tough times during the pandemic

What effect will Tier 2 have on Cambridge businesses?

Although not the highest level of restrictions, moving from Tier 1 to Tier 2 places further pressure on already beleaguered businesses that have suffered severe trading and cash flow issues since the pandemic began.

For some, revenues for the period leading up to Christmas represent a significant proportion of their annual turnover, so these additional restrictions will only lead to further financial distress, andpotentially insolvency.

UK Liquidators are licensed UK insolvency practitioners dedicated to supporting companies, directors, and stakeholders in the Cambridgeshire area.

Our team at the Cambridge office can offer professional guidance on how to mitigate the effects of coronavirus restrictions, and advise on any rescue and recovery options that may be appropriate for your business.

The percentage of people testing positive for the coronavirus has fallen in Cambridgeshire but firms face a long road back to normality

So how might we be able to help?

* Restructuring advice: If you are facing relentless pressure from creditors, formally restructuring your debts within a Company Voluntary Arrangement (CVA)is just one potential option, and could protect you from compulsory liquidation.

* Emergency finance: We can advise on the best form of funding for your business – this might be a coronavirus business loan, or a more tailored alternative such as invoice or asset-based finance.

* Liquidation support: If liquidation is your only option, our team will talk you through the process and provide professional support throughout.

If you would like to discuss the issues your business is currently facing, you can arrange a free consultation in complete confidence with your local UK Liquidators office in Cambridge.

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