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Hiving off unsuccessful business elements - news article image

Hiving off unsuccessful business elements

17 May 2022

1 minute read

Unlocking opportunity from uncertainty  

Over the course of the last couple of years, most companies have had to learn, very quickly, how to adapt to new and constantly changing business conditions and demands. It has been easier for some than others, and what has become increasingly apparent to me, is that there are companies where certain parts have been able to pivot and grow, but others are no longer relevant or are proving to be a drain on the company as a whole. 

Effectively, one aspect of the business, such as online, overtaking more traditional routes to market, which was the primary force before Covid. Restructuring of a company may then be required, and more importantly, beneficial to all stakeholders. 

At Shaw Gibbs, we are able to assist in an advisory capacity, such as where I was able to successfully assist a client in negotiations with the landlords of two shops, when it had become increasingly obvious that the online element of the business was the future. All of the stakeholders ultimately benefitted from the agreement reached, since landlords received a payment in full over a period of time, most employees were retained, suppliers were paid, and the business continued. 

It is also possible for an insolvency process, such as Administration, to be a vehicle to save the profitable element of a business, thereby usually saving jobs and ensuring a return to creditors, as opposed to the no longer successful element leading to the ultimate demise of the whole business if no advice is sought and action taken. Taking advice early can often be the decision which saves the business.

Hiving off unsuccessful business elements - news article image

Author:

Karyn Jones

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