Manufacturing: rescue and insolvency advice
Financial pressures in manufacturing
Manufacturers can have cash locked in raw materials, work in progress and finished stock while wages and energy bills fall due. An apparently full order book may include orders whose remaining production costs exceed their receipts.
- Work in progress and order profitability
- Machinery finance and supplier ownership claims
- Energy, labour and customer concentration
What to review before deciding
Build an order-level cost-to-complete schedule and a stock list distinguishing owned goods from goods subject to third-party claims. Identify tooling belonging to customers. Review bottlenecks and essential suppliers before proposing continued production.
Rescue, repayment and closure options
The first question is whether the underlying business can meet its ongoing costs after realistic changes. A business rescue review can examine margins, creditor discussions and the resources needed to keep delivering work. Where tax arrears are part of the problem, HMRC Time to Pay depends on an acceptable, affordable proposal; approval is not guaranteed.
For a suitable limited company, a Company Voluntary Arrangement or administration may warrant consideration. If recovery is not viable, read about Creditors’ Voluntary Liquidation. Formal appointments require a licensed insolvency practitioner. The right route depends on the legal structure, jurisdiction and facts, not the sector label alone.
Prepare for a confidential discussion
Bring recent accounts, a current bank balance and a list of overdue payments. For manufacturing, also prepare records covering work in progress and order profitability; machinery finance and supplier ownership claims; energy, labour and customer concentration. Identify any payment demand, hearing or other deadline at the start of the conversation.
Ask for the proposed scope of work, likely fees and any assumptions in writing before agreeing to a paid service. An initial enquiry does not commit you to a procedure. Complete the enquiry form or call 01246 912052 to explain the position.
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Related guidance
Manufacturing: common questions
Compare the remaining production costs with realistic receipts and contractual consequences. Prioritisation needs advice on creditor interests and available funding, not simply the size of the customer.
That depends on ownership, existing security, value and funding availability. Include future rental costs in the forecast; a one-off cash injection may leave the underlying loss unchanged.
Identify ownership, location and access arrangements. Keep it separate from the company’s saleable assets and agree any return or ongoing use through the appropriate process.
Further reading: Closing a limited company. Guidance reviewed 1 November 2026. Regulatory requirements and procedures vary across the UK; obtain advice for your location and business structure.