Panicked firms call insolvency experts as the crisis worsens

HUNDREDS of firms have contacted insolvency specialists after Boris Johnson put Britain into lockdown.

R3, which represents 800 restructuring firms including KPMG, EY, Grant Thornton and Deloitte, said its members had received calls from restaurant groups, retailers and transport firms.

Some are big high street brands, others are small firms, but all were seeking advice on how to handle a possible ‘restructuring’ as they face prolonged closures. The Government ordered businesses such as pubs, restaurants and gyms to close from Friday night to control the spread of the epidemic.

At the same time Chancellor Rishi Sunak guaranteed to pay up to 80 per cent of salaries, defer VAT payments and raise out-of-work benefits to alleviate strain on firms and staff. Analysts called the package a ‘lifeline’ but said firms needed more detail on how and when they can access support.

Many face a crunch time next week when quarterly rents and March payrolls are due after weeks of dwindling cash flow as Britons self-isolate. It is estimated up to 250,000 jobs in the hospitality industry have been lost in the past fortnight.

Kate Nicholls, chief executive of industry body UK Hospitality, said the Government’s rescue package may have saved up to a million jobs, but banks and landlords needed to do more to help firms ‘bridge the gap’ until grant support arrives next month.