Restructuring Businesses in Distress: Going Green as a Vital Step towards Recovery

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Once a company is found to be insolvent there are a few options available to affect a total turnaround. Amongst the most popular recovery solutions is Company Administration because it allows for a total restructuring of a business in order to realise future profits whilst paying off current debts.

A licensed Insolvency Practitioner, acting as Administrator, will seek to find ways to maximize profits and minimise expenditures. Everything from paper clips to management will be analysed and restructured if necessary.

How Effective Is Management?

Sometimes an Administrator must make a difficult decision as to whether or not management has been doing their job effectively. Quite often this necessitates a change in upper-level staff in order to bring about the changes needed to turn around to profit. Whether current management has simply been lax or are incapable of doing the job they were hired to do, the IP may either bring in interim managers or hire permanent managers who can facilitate growth going forward.

Market Analysis of Products or Services

Another critical aspect of restructuring a business in distress is evaluating products or services offered by the company. Are they outmoded and no longer in demand? Perhaps newer technology has been developed which has caused a product line to become obsolete. The economy also has a huge impact on whether or not merchandise or services move quickly enough to realise a profit. When austerity hit the UK, many individuals and companies alike had to cut back on unnecessary expenses. Administrators facilitate updating products or services to suit the needs of a given market based on the current economy whilst making forecasts as to what will move in the future.

Cutting Back on Operating Expenses

Today’s Administrator views operating expenses in a whole new light. In fact, Government gives incentives to businesses that make an endeavour to ‘go green’ in terms of energy consumption and this is where a savvy IP knows how to save your company money. They will help you discover ways to take advantage of green incentives whilst saving money on monthly utility bills. You will learn to turn off and unplug any machinery that is not in use, recycle paper products, use energy efficient lamps and appliances and of course compare prices between energy suppliers.

Calling in the Experts for Employee Awareness

At times it is even beneficial to have a professional workshop for employees to learn how to cut back on energy in day to day activities. Have you ever considered the fact that going green can save more than just your business? Using less electric reduces your carbon footprint and helps to preserve the beauty of the earth you live on. This is one expense that just may save your company tens of thousands in years to come.

Using Company Administration to restructure your struggling enterprise not only helps to keep your creditors from harassing you but also is a means to an end. Your motivation in reorganisation is to keep your workers employed, your shareholders making dividends and your business running throughout the turnaround process. It is the intent of your Administrator to bring about changes in every area possible so that you spend less and make more. Going green is a vital part of that process.


Adam writes various pieces of content for and look to engage businesses with the very latest information on company restructuring.  In the past he has covered various articles relating to Tax, VAT as well as useful information for Directors running their own businesses.

Business Restructuring Word Cloud image via Shutterstock


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