Press Releases

September 2010

Accountants Advise Early Action For Connaught Suppliers

The collapse of property services giant Connaught will have a knock-on effect throughout its South-West heartland, according to local accountancy firm Milsted Langdon.

Quite apart from the effects on individuals whose jobs are under threat, and the local authorities and social housing providers who will have to find other firms to take on their maintenance work, many suppliers and sub-contractors in the region are also likely to see a negative effect on their bottom line.

Milsted Langdon partner and insolvency practitioner Tim Close said that any firm which was heavily reliant on Connaught should seek help now, in order to plan for any potential financial difficulties ahead.

He added: “Connaught’s collapse is likely to have a major effect on businesses that were reliant on them, and for those companies, I would urge them to seek advice sooner rather than later.  The earlier a business in financial distress asks for 
help, the greater will be the number of available options for a successful recovery plan

“The construction industry has had a hard time during the recession, and it was often the public sector that kept many property and construction firms in business, with the result that a lot of companies are now more heavily reliant on that sector than was previously the case.

“If firms believe they are likely to lose significant amounts of business, or not be paid for work done as a result of this, they should obtain professional advice from a qualified insolvency practitioner who will be able not only to help prepare contingency plans but will also be able to discuss alternative funding options.  We routinely assist clients in difficulty to manage pressure from creditors while a turnaround strategy can be formulated.  In addition, our experienced debt recovery team has an enviable track record at recovering construction debts, often without recourse to costly litigation.

“Getting reliable and timely advice now could be the difference between suppliers being able to ride out this storm or suffering a blow from which their business never recovers.”

For more information call 0117 945 2500.