If your business is struggling and the pressure’s building from creditors, HMRC, or just day-to-day stress, you might be wondering whether it’s time to call it a day. It’s a hard decision to make, but you’re not alone in it.
I’m Nick — a Business Recovery and Insolvency Consultant with over 30 years’ experience. I’ve helped hundreds of directors understand their options and take calm, confident steps toward closure, relief, and in many cases, a fresh start.
This page outlines the different ways a company can be closed, from formal liquidation to striking off, and what they each mean for you as a director. Whether you’re certain or just weighing things up, I’m here to help you make the right call.
Options for closing your company
If your company can’t keep going, or you’ve decided it’s time to step away, there are several ways to close it down properly. The right route depends on your situation, but whatever you’re facing, there’s always a way forward.
Here are some of the most common options:
Creditors’ Voluntary Liquidation (CVL)
If your company is insolvent and there’s no realistic way to rescue it, a CVL is the most common way to close down properly. It draws a line under the debts, stops the pressure from creditors, and allows you to move on.
Pre-Pack Liquidation
If your company can’t continue in its current form, but there’s a viable business underneath — customers, contracts, staff — a pre-pack sale might allow you to buy back assets and start again under a new company.
Compulsory Liquidation
If a creditor (like HMRC) has already taken action to wind up the company, you may be facing a compulsory liquidation. There’s still time to take control, but it’s important to act quickly.
Members’ Voluntary Liquidation (MVL)
If your company is solvent and you’re looking to retire, restructure, or release retained profits, an MVL could be the most tax-efficient way to close the company and access your funds.
Company Strike Off
For companies with no debts and no assets, a voluntary strike-off might be a simple way to close the business. It’s not suitable in all cases, but I can help you work out if it’s the right fit.
Can I start again?
Yes — and many directors do. If your current company isn’t viable, but the core of the business still works, we can look at routes to restart — properly, transparently, and within the rules.
Pre-Pack Liquidation
This allows a planned sale of the business and assets at the point of liquidation, letting you continue under a new company.
Pre-Pack Administration
A similar option to pre-pack liquidation for slightly larger businesses, where an administrator oversees the transfer. It can help preserve jobs, contracts, and continuity.
Not sure if you’re allowed to do this? Or how it works? Let’s talk it through — I’ll explain what’s possible based on your specific circumstances.
What if I’m not sure what to do?
Most directors I speak to aren’t sure which option fits — and that’s perfectly normal. You don’t have to decide right now. You don’t even need to know what questions to ask.
What you can do is have a free, confidential chat with me, no pressure, no commitment. I’ll listen, explain what’s possible, and help you work out the best way forward for you and your company.
Questions directors often ask me
What’s the difference between CVL and Compulsory Liquidation?
A CVL is director-led and gives you more control. Compulsory liquidation is usually forced by a creditor via the courts. If you act early, you can usually avoid the compulsory route.
Can I be held personally liable for my company’s debts?
Usually not — unless you’ve signed personal guarantees or there’s evidence of wrongful trading. I can talk you through this in plain English.
Can I set up another company after liquidation?
Often yes — but there are rules, especially around the company name. I’ll help you understand what’s allowed.
Can I still be a director after liquidation?
In most cases, yes. There are exceptions, but I’ll explain these clearly and honestly.
Is liquidation the same as bankruptcy?
No — liquidation is for companies. Bankruptcy is a personal insolvency procedure for individuals.
What’s the first step?
A free, confidential conversation.
You don’t need to commit to anything, and you certainly don’t need to figure it all out on your own. I’ll listen to where things stand, explain what options are available, and help you make sense of the next step.
Whether you’re looking to close your company, save it, or just explore what’s possible, I’m here to support you, without judgment or pressure.