When cash becomes tight and pressure from HMRC, lenders, suppliers or landlords starts to bite, directors often ask the same question: what are my options and what should I do now to protect the business and myself?
Company Insolvency
Business Insolvency and Financial Distress Support
If your business is facing financial distress or creditor pressure, our insolvency solicitors provide clear, practical advice to protect your position and explore recovery options.
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Supporting businesses through financial distress and creditor pressure
When your business is facing financial pressure, decisive and timely action is essential. Whether you have received a statutory demand, are dealing with a winding-up petition, or are experiencing wider creditor enforcement action, the right legal advice can make a critical difference.
At Tees, our insolvency specialists work alongside directors and business owners to stabilise situations quickly, protect value, and identify the most effective path forward. We provide clear, pragmatic advice tailored to your commercial objectives, helping you stay in control during uncertain times. We have relationships with external professionals such as insolvency practitioners and accountants who we can involve to provide you with a seamless, fully considered approach.
"The insolvency and corporate recovery team at Tees are fantastic with its breadth of legal knowledge and expertise. They are a go-to firm in the south-east." - Legal 500 2026
Responding to statutory demands and insolvency petitions
Receiving formal creditor action can be alarming, but it does not always mean your business has reached the end of the road. We regularly support clients in:
- Responding urgently to statutory demands and winding-up petitions
- Assessing whether a demand or petition can be challenged
- Bringing injunction applications to prevent presentation or advertisement of winding up petitions
- Negotiating with creditors to reach workable settlements
- Implementing commercial strategies to protect the business
- Advising directors on their duties and potential personal exposure
Our focus is always on achieving the best possible outcome, whether that involves business recovery, restructuring, or an orderly resolution.
Why early advice matters
Seeking specialist advice at an early stage can significantly expand your options and improve outcomes. Early intervention can help to:
- Prevent escalation into formal insolvency proceedings
- Protect directors from potential personal liability
- Preserve the underlying value of the business
- Minimise disruption to employees, customers and suppliers
- Maintain control over key decisions and future strategy
Acting quickly not only reduces risk—it often creates opportunities to recover and rebuild.
Clear, commercial support when you need it most
We understand the pressures that come with financial distress. Our team combines legal expertise with commercial awareness to provide practical, straightforward guidance at every stage.
Whether you are facing immediate creditor action or noticing early signs of financial instability, we are here to help you take control of the situation with confidence.
Speak to our business insolvency team
If your business is under pressure, early advice can make all the difference. Get in touch with our team to discuss your situation in confidence and explore your options.
Legal and financial advice under one roof
Tees is a top-tier Legal 500 firm offering joined-up legal and financial services. We have our own independent financial advisers (IFAs), who work closely with our property lawyers, so we can help with any financial issues relating to buying and selling property.
Our advisers provide holistic financial planning, and as we are not connected to any one provider, we can offer a whole-of-market approach for the range of products we can advise on. We can also give independent advice forof a whole range of insurance products to protect you and your family. Our IFAs are regulated and authorised by the Financial Conduct Authority, which means we’re accountable for the advice we give.
Get in touch today, we’re here to help
Our clients range from high-net-worth individuals with complex finances to those with more straightforward needs. We also specialise in the agricultural sector, having a sound understanding of the relationship between business and personal needs.
Featured articles
Many companies do not fail suddenly. In most cases, insolvency is the result of a gradual decline in performance, followed by financial distress and ultimately a cash-flow crisis.
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Business insolvency FAQs
What is a statutory demand and how should I respond?
A statutory demand is a formal request for payment of a debt. Upon the expiry of 21 days, if payment, or an application to injunct the presentation of a winding up is not made, the creditor can bring a winding-up petition. You should seek legal advice immediately to assess whether the demand is valid, can be challenged, or if negotiation with the creditor is possible.
Can a winding-up petition be stopped?
Yes, in some cases a winding-up petition can be stopped or dismissed. This may involve disputing the debt, reaching a settlement with the creditor, or applying to the court for an injunction to prevent presentation of the petition or advertisement of the petition in the Gazette. Early legal advice is critical to maximise your options.
What are my duties as a director if my company is in financial difficulty?
When a company is in financial distress, directors must prioritise the interests of creditors. Failing to do so can lead to personal liability. Taking early professional advice helps ensure you meet your legal duties and reduce risk.
What are the signs my business may be heading towards insolvency?
Common warning signs include cash flow problems, mounting creditor pressure, missed payments, and threats of legal action. Identifying these early allows for more options, including restructuring or recovery strategies.
Can my business recover from financial distress?
In many cases, yes. With the right legal and financial support, businesses can restructure, negotiate with creditors, and return to stability. The sooner advice is taken, the greater the chance of recovery.
How quickly should I seek insolvency advice?
Immediately. Time is critical in insolvency situations. Early intervention can prevent escalation, protect directors, and preserve business value.
What happens if I ignore a statutory demand?
Ignoring a statutory demand can result in the creditor issuing a winding-up petition against your company. This can have serious consequences, including compulsory liquidation.
You might also need
Contractual Disputes and Debt Recovery
Any dispute is a potential risk to your business. It can affect productivity, reputation and ultimately the health of your business, so it’s important to take legal advice at an early stage.
Business Restructuring
All businesses consider restructuring at some point. Whether they want to streamline, prepare for sale, merger or de-merger, change their financial structure, refinance or saving costs.
Director and Shareholder Disputes
Differences over direction, personality clashes, misconduct, and conflicts of interest are not uncommon. Often these disputes can impact the effective running of the company, so it is important to get expert advice as soon as possible.
Partnership Disputes
Our commercial law team handles partnership disputes across sectors, helping you resolve issues through negotiation or mediation wherever possible. If court is unavoidable, we’ll support you throughout..
Frequently asked questions
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