Understanding corporate recovery: a practical guide for UK businesses
Running a business is rarely smooth sailing. Even successful companies can face financial challenges caused by market shifts, economic pressures, or unexpected setbacks. For many directors, the words corporate recovery can sound daunting—but in reality, it is a practical set of solutions designed to protect jobs, safeguard assets, and give businesses the breathing space they need to recover.
So, what is corporate recovery? At Bennett Verby, we specialise in guiding UK businesses through periods of financial difficulty with a wide range of corporate recovery services. This guide will help you understand what corporate recovery means, the options available, and how early action can make all the difference.
Why Corporate Recovery Matters
Financial distress doesn’t happen overnight—it often builds over time. Common warning signs include:
- Persistent cash-flow shortages
- Increasing creditor pressure or threats of legal action
- Difficulty paying HMRC on time
- Mounting debts with no clear repayment plan
If left unchecked, these problems can escalate into insolvency. Corporate recovery provides structured ways to address financial issues before they reach crisis point. The aim is simple: protect the underlying business where possible and achieve the best outcome for stakeholders.
Key Corporate Recovery Services
Bennett Verby offers a full range of solutions tailored to the needs of each business.
Administration
Administration gives companies breathing space by placing them under the protection of a licensed insolvency practitioner. This creates a legal “moratorium” against creditor action while options such as restructuring, refinancing, or business sale are explored.
Business Turnaround
Not every struggling company needs formal insolvency. Turnaround strategies focus on improving cash flow, streamlining operations, and renegotiating with creditors to restore profitability and stability.
Confidential Advice
Sometimes directors just need an honest conversation about their options. Our confidential advice service allows business leaders to seek expert guidance discreetly, without obligation, and in total confidence.
Independent Business Reviews (IBRs)
Lenders and stakeholders often require an impartial assessment of a company’s financial health. An IBR provides an objective review of viability, helping everyone involved make informed decisions about the future.
Informal Arrangements
For some businesses, a full formal procedure isn’t necessary. Informal agreements with creditors, including HMRC, can buy vital time to stabilise finances and regain control.
Voluntary Arrangements (CVAs & IVAs)
A Company Voluntary Arrangement (CVA) or Individual Voluntary Arrangement (IVA) provides a legally binding repayment plan, allowing businesses or individuals to repay debts over time while continuing to trade.
Receiverships
In cases where a secured lender takes control, receivership ensures that assets are managed effectively and creditor interests are maximised.
Liquidations
When recovery isn’t possible, liquidation may be the best way forward. Bennett Verby advises on all types of liquidation. From Creditors’ Voluntary Liquidations (CVL) to Members’ Voluntary Liquidations (MVL), ensuring directors and shareholders understand their responsibilities and options.
Choosing the Right Recovery Route
Every business is different. The right solution depends on:
- Urgency — How quickly is creditor action expected?
- Viability — Can the business realistically be saved?
- Stakeholder needs — What outcome is best for creditors, employees and directors?
- Confidentiality — Does the situation require sensitive handling?
That’s why the first step is always to seek confidential advice from a qualified insolvency practitioner. An early, honest discussion helps identify the most effective path forward.
Why Work with Bennett Verby?
With over 100 years of combined experience, Bennett Verby has a proven track record of supporting UK businesses through difficult times. Led by licensed insolvency practitioner Vincent Simmons, our team offers:
- Offices in Manchester and London, covering businesses across the whole of England and Wales
- Tailored solutions for businesses of all sizes
- A practical approach that prioritises job protection and business continuity
- Complete discretion, ensuring sensitive matters stay confidential
Our goal is to give directors clarity, confidence, and a clear plan of action.
Take Action Today
Financial pressure doesn’t have to mean the end of your business. With the right advice and support, recovery is often possible.
If your company is facing financial challenges, don’t wait until it’s too late. Contact Bennett Verby today for a free, confidential consultation and discover the best recovery options for your business.
