Insolvency Advice for Event Businesses

Insolvency Advice for Event BusinessesIf an events business is facing financial difficulties and considering insolvency, seeking advice from a licensed insolvency practitioner is crucial.

An experienced insolvency practitioner can help the business understand its options and guide it through the insolvency process to minimise the impact on its creditors and maximise the chances of survival

Despite the glimmers of hope that come with the Covid-19 vaccination programme, the events sector has been hit hard by the pandemic and is still grappling with severe financial challenges.

Unfortunately, many events companies have been unable to operate in any form for over a year, and the window of opportunity for them to bounce back may be closing fast.

Compounding these issues is the unpredictable nature of the pandemic-related restrictions on gatherings, which have made planning for the future nearly impossible. Events companies of all sizes are struggling to navigate this tumultuous landscape and are facing an impossible trading environment.

The fallout from this situation is far-reaching and affecting a wide range of professionals, including creative artists, performers, freelance tour managers, actors, catering staff, and venue operators. These individuals and businesses have seen a wave of cancellations and postponements, leaving them in a state of uncertainty and financial insecurity.

Rescue, Recovery, and Closure Options for Events Companies

For events companies facing financial distress, there are several options available to them. If the company is still viable and has a realistic chance of turning things around, it may be worth considering rescue options such as refinancing, restructuring or negotiating with creditors. These options may involve seeking external funding, downsizing the business or selling off assets.

If the business is not viable in the long term, then recovery options such as administration or a company voluntary arrangement (CVA) may be more appropriate. Administration involves an insolvency practitioner taking control of the company and looking for ways to salvage it, such as selling off parts of the business or restructuring it. A CVA is a legally binding agreement between the company and its creditors to pay back debts over a fixed period.

In cases where the business is beyond recovery, closure options such as liquidation or voluntary dissolution may be the only solution. Liquidation involves the sale of all company assets to pay off creditors, while voluntary dissolution is a formal process for closing down a company that has no debts or liabilities.

Types of Rescue, Recovery, and Closure Options for an Events Business

An events business in financial distress can explore a range of Rescue, Recovery, and Closure Options, including:

Company administration

Company administration is a formal insolvency process that can help an events company in financial distress to restructure and potentially continue trading. An administrator is appointed to take control of the company and work with its stakeholders to find a way forward. During the administration period, the company is protected from legal action by creditors and can continue to operate, giving it a chance to get back on its feet.

The administrator will work to stabilize the business, which may involve cutting costs, negotiating with creditors, or selling off parts of the company. If the company can be rescued, the administrator will develop a plan for the business to continue operating in a sustainable way. If the company cannot be rescued, the administrator will oversee the sale of its assets to repay creditors.

Overall, company administration can be an effective tool for an events company to get back on track and emerge from financial difficulties.

Company voluntary arrangement

A Company Voluntary Arrangement (CVA) is a formal agreement between an events company and its creditors to pay back debts over a fixed period. This arrangement can be beneficial for a business that is struggling financially because it allows the company to continue trading while repaying its debts in a way that is manageable and sustainable.

With a CVA, the company works with a licensed insolvency practitioner to develop a repayment plan that is tailored to its specific needs. The plan typically involves paying back a portion of the debt over a period of three to five years, and the remaining debt is typically written off.

During this period, the company is protected from legal action by its creditors, allowing it to focus on stabilizing and growing the business. Overall, a CVA can be an effective way for an events company to recover financially, by providing a pathway to repay its debts and regain financial stability, while continuing to operate the business.

Creditors voluntary liquidation

Creditors Voluntary Liquidation (CVL) is a formal insolvency process that can be used by an events company that is no longer viable to pay its debts. In a CVL, the directors of the company voluntarily choose to liquidate the business and appoint a licensed insolvency practitioner to oversee the process. The insolvency practitioner will work to realise the company’s assets, sell them off, and distribute the proceeds to the company’s creditors.

Once this process is complete, the company will be dissolved and will cease to exist. The CVL process is initiated by the company’s directors, but it is ultimately up to the company’s creditors to decide whether to accept the proposal. Creditors will usually prefer a CVL to a compulsory liquidation because it allows for a more orderly and controlled wind-down of the business.

Overall, a CVL can be a suitable option for an events company that is no longer viable and wants to minimise the impact on its creditors while winding down its operations.

Invoice finance

Invoice finance can be a useful tool for an events business that needs to improve its cash flow. With invoice finance, the company can receive an advance on its outstanding invoices, which can be used to cover its operating expenses or invest in new projects. Instead of waiting for customers to pay their invoices, the business can access the funds it needs right away.

There are two types of invoice finance: factoring and discounting. Factoring involves selling the business’s unpaid invoices to a finance provider, who will then take responsibility for collecting the debt. Discounting, on the other hand, involves borrowing against the value of the unpaid invoices.

Both options can be useful for an events business that needs to improve its cash flow, as they allow the company to access funds that would otherwise be tied up in unpaid invoices. However, it’s important to carefully consider the costs and terms associated with invoice finance, as well as the impact it may have on customer relationships.

Frequently asked questions

What is liquidation, and how does it apply to an events business?

Liquidation is the process of selling off the assets of a business and distributing the proceeds to creditors. For an events business, this may be an option if the company is insolvent and unable to pay its debts.

How can an events business prepare for liquidation?

If an events business is considering liquidation, it's important to seek professional advice from a licensed insolvency practitioner. The business should also gather all relevant financial documents and prepare a list of all assets and liabilities. This can help ensure that the liquidation process runs smoothly and that creditors are paid as much as possible.

What are the potential consequences of liquidation for an events business?

Liquidation can have significant consequences for an events business, including the loss of jobs for employees and the closure of the business. However, it may also provide a way for the company to pay off its debts and avoid legal action from creditors. It's important to carefully consider all options before proceeding with liquidation, and to seek professional advice throughout the process.


In conclusion, seeking insolvency advice for an events business at an early stage can be crucial to avoiding further financial difficulties and legal complications. As a director, it’s important to be proactive and seek professional guidance as soon as possible if the company is experiencing financial distress.

This can help identify potential solutions and provide a clear roadmap for moving forward. At this stage, completing an online enquiry for insolvency advice may be a necessary step to get the process started. If you’re a director of an events business facing financial challenges, don’t hesitate to seek advice and take action to protect your business and its stakeholders.

Insolvency & Restructuring Expert at Business Insolvency Helpline | + posts

With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.