JIM STAFFORD

Friel Stafford

Managing Director Friel Stafford

The firm was set up in 1994 by Jim Stafford with a focus on corporate recovery and insolvency. The firm has been appointed as liquidators, receivers and examiners to more than 1,000 companies across a range of industries, and is a member of the PrimeGlobal network of international accountants.

SERVICES We have been retained in a number of landlord/tenant disputes over unpaid rent, acting for either side. Last April many landlords were particularly aggressive against tenants, but many have since calmed down when they realised that they were, in effect, in partnership with their tenants in a very difficult economic environment. Some landlords are beginning to accept rent based on a percentage of turnover.

We are seeing an increased volume of members’ voluntary liquidations (i.e. solvent liquidations) as more business people decide to ‘cash in their chips’ before they lose them in the brew of economic uncertainty. As one business person said to me recently: “I have learnt from Covid lockdown that we can live well by cutting back on our spending, and thus I do not need to work anymore to provide for my retirement. It is time to enjoy our retirement.”

One driver of our work is the resolution of shareholder disputes and raising finance to buy out shareholdings. We have extensive experience of practical mediation around shareholder disputes, which are increasing in number. It as an area of work that we enjoy, as it involves complex tax, employment law, company law, negotiation etc.

We have also seen a particular increase in demand for our forensic accounting services, which has been partly driven by business interruption claims, and also partly by Chinese investors who are seeking better quality information in respect of their investments made under the ‘cash for passports’ scheme.

OUTLOOK The biggest decision facing some business people at the moment is whether they should hold or fold their businesses in the face of the uncertainties caused by Brexit and Covid. There is growing concern that it could be early summer before many businesses will be in a position to reopen this year. This extended closure will be the final straw for a lot of businesses. While the wide range of government supports have kept many businesses alive, their phased withdrawal will cause some businesses to collapse.

Many suppliers have extended generous long-term credit terms to customers in the hope that they will survive. Unfortunately, some customers will end up going to liquidation, which could have a domino effect on suppliers at the top of the supply chain. This crisis is very different from 9/11, the dotcom crash and the 2008 economic crash. This time, we are dealing with many second and third-generation businesses who were prudent but are now being economically wiped out.

It is important that a business doesn't continue to trade when it is losing money – and likely to continue to do so in the future. We have seen too many cases of directors losing family homes and their pension funds as a result of putting good money in after bad.

‘This extended closure will be the final straw for a lot of businesses’