Small Business Restructuring Success: Industry Magazine Business
Powered by Jirsch Sutherland
“
SBR put us back in control of our publishing & advertising business, finances and livelihood. No more stress, anxiety and sleepness nights.
Business owner
Key savings for this business in distress
This business saved $338K off their tax bill
Creditors agreed to receive 29.15¢ in the dollar
Company was able to slash 71% off their debts
The process completed within 6 weeks
Simple with excellent results
Small businesses are choosing SBR for its simplicity and effectiveness with real results.
IN DEPTH
The challenges, process and solution
A transparent look into the situation, process and outcome for the client and stakeholders
01.
Challenges
- A combination of factors including bushfires, floods and the pandemic significantly impacted local businesses’ desire to spend on periodical publication advertising.
- The commission-based workforce was eroded, with JobSeeker being increased to $750/wk.
- Accountant and financial adviser to the business for 40 years fell ill and the company was slow in responding to this compliance gap.
Reasons for hope
- Appointed new advisers.
- Succession within the business from father to son.
- Public health orders lifted and more funds available for local
businesses to return to their prior advertising spend.
02.
The company had debts amounting to $ 488,855. A majority of the debt owed to the ATO.
03.
The business owners engaged us to help with their situation. With our guidance and support through the SBR process, a compromise plan was proposed:
- $150,000 payable within 7 days of acceptance.
- This plan was accepted by the creditors.
04.
Overall the plan was a success for clients who saved thousands off their ATO bill and creditors were able to obtain a return instead of nothing all.
Return for creditors
- 29.15 cents in the dollar (SBR) versus nil if liquidation had been chosen
Company savings
- $338,855
- Owner saved thousands off their ATO debts
- Owner is free from stress and anxiety, creditors are off their backs
- Owner remained in control of the company and day-to-day operations
- Their employees retained employment, business continued operating
- Owner can spend time with family instead of worrying about debts
SIMPLE. PROVEN.
A simple path forward for distressed businesses
BUSINESS OWNERS, COMPANY DIRECTORS
Since the introduction of SBR in January 2021, many distressed business owners have contacted us to take advantage of SBR for debt relief and get creditors off their backs.
ACCOUNTANTS, LAWYERS, ADVISORS
Hundreds of accountants, lawyers and advisors trust our expertise and have recommended and referred to us their small business clients who are struggling with debt and financial stress.
They know and trust us to deliver the right solution to help their clients get the relief they need financially and mentally.
Less stress from creditors
Put the days of being chased by creditors behind you
Comparably low cost + quick
SBR is cheaper, simpler & quicker than other solutions which can take months
Improve cash flow
Eligible small businesses can benefit greatly by cutting thousands from their debts
Slash your tax debt
Freedom
- Reduce business debt owed to creditors
- Simpler & faster than traditional options
- Negotiate favourable debt repayment terms
- Company is protected from legal action
- Avoid liquidation
- Improve business cash flow
- Help your employees retain their jobs
- Retain control of ordinary business operations
What our clients say about us
Our numbers only tell half the story, below are comments from recent clients we’ve helped
Robert
Retail Fashion Business
Facing significant challenges from the COVID-19 pandemic, my fashion retail business was in a precarious position. High debts and disrupted supply chains made survival seem uncertain. Thanks to Jirsch...
Retail Fashion Business
Facing significant challenges from the COVID-19 pandemic, my fashion retail business was in a precarious position. High debts and disrupted supply chains made survival seem uncertain. Thanks to Jirsch Sutherland, recommended by Kelly Partners, we found a way forward. Their understanding, professionalism, and effective negotiation led to a manageable Small Business Restructure with the ATO, enabling us to address our financial difficulties and focus on recovery. I appreciate Jirsch Sutherland’s practical and empathetic approach and recommend their services for businesses facing similar financial issues.
Robert
Tom
Manufacturing Business, NSW
The SBR process was better than I expected. The Company retained full control of the operations throughout the process and the outcome was exceptional, resulting in a significant reduction of our lega...
Manufacturing Business, NSW
The SBR process was better than I expected. The Company retained full control of the operations throughout the process and the outcome was exceptional, resulting in a significant reduction of our legacy debts. With Andrew’s help, we were able to provide a clear message to our creditors regarding our business’s difficulties and how they have been overcome. The SBR saved my business.
Tom
Rachael
Group of Cafe Businesses
The SBR process was very useful with getting my financial world back on track 👏. The process was well explained and was an efficient and moral way of trying to control the debts I had accumulated. I w...
Group of Cafe Businesses
The SBR process was very useful with getting my financial world back on track 👏. The process was well explained and was an efficient and moral way of trying to control the debts I had accumulated. I would recommend it to anyone who has been in business over the last few years and gained debts due to the external factors that have affected us all. The Team at Jirsch Sutherland were very professional and great to deal with throughout the process.
Rachael
David
Education Business
Working with Jirsch Sutherland was a significant positive step for our business during its restructuring phase. Their team was notably easy to collaborate with, offering a level of approachability and...
Education Business
Working with Jirsch Sutherland was a significant positive step for our business during its restructuring phase. Their team was notably easy to collaborate with, offering a level of approachability and adaptability that was much appreciated. They demonstrated a deep understanding of the complexities involved in small business restructuring, guiding us through each phase with ease and ensuring we were well-informed.What really made a difference with Jirsch Sutherland was their effective communication. They maintained regular contact with us, making sure we were always aware of the next steps and what was expected from us. This consistent communication helped build a foundation of trust, crucial for the successful restructuring of our business. With Jirsch Sutherland’s guidance, we were able to address our challenges with a clear strategy, helping us to become more streamlined and focused. We’re thankful for their expertise and the support they provided during a critical time for our business.
David
Matthew
Electrical Business
“The team at Jirsch Sutherland were the ultimate professionals. Michael and Victor smashed my SBR out of the park. From day 1 they were up front, honest and very clear in the process, outlining potent...
Electrical Business
“The team at Jirsch Sutherland were the ultimate professionals. Michael and Victor smashed my SBR out of the park. From day 1 they were up front, honest and very clear in the process, outlining potential issues and making sure I was comfortable with the steps we had to take. Michael was always reassuring, helping me understand what was happening and to trust the process.Their seamless integration with my accountant made things easy as well. The channels of communication were always open, even to the point where Michael was speaking to my creditors to help them understand the process.The process from start to finish for my company was simple and completed fairly quickly. The bonus was I was in total control of my company all the way through and the business was able to continue to operate, keeping my clients needs fulfilled.Doing the SBR helped reduce my liability significantly, which means I can now focus on building the business without that substantial COVID induced debt over my head.”
Matthew
SBR FAQS
Your questions answered
It is an agreement between your company and your creditors. There is no set plan, which means they are able to be very flexible. Usually, these plans involve a one-off contribution from someone such as a director, which is paid to creditors by the restructuring practitioner.
Your SBR practitioner, in consultation with you, has 20 business days to draft a restructuring plan that your creditors will vote on (This can be extended by up to 10 business days). Once presented, your creditors then have 15 business days to accept or reject it. While they are deciding, your business can continue to trade.
All unsecured debts that were incurred prior to your company entering restructuring are included, with the exception of employee entitlements that are not yet payable, such as leave and redundancy payments. If your company incurs debts after it enters restructuring, these debts do not form part of the plan and need to be paid off outside the plan.
Yes. The business must pay any employee entitlements which are due and payable before a
plan can be proposed to creditors.
Eligibility must satisfy these conditions:
- Total debts not exceeding $1 million
- Be insolvent or likely to become insolvent
- Employee entitlements are up to date
- Tax Office lodgements are up to date. Note you can still have money outstanding
- The company must not have previously used the small business restructuring process or the simplified liquidation process within the past 7 years
Use our Eligibility Checker
There are alternative options such as:
- Voluntary Administration
- Creditors Voluntary Administration
- Liquidation
Best to contact one of our experts to discuss your options.
If your plan is rejected, then the restructuring process is over. While you remain in control of your company, your creditors are able to enforce their rights. Your protection from liability for insolvent trading also ends. Your options now include voluntary administration or liquidation.
The fee of the Restructuring Professional for developing the restructuring plan and liaising with Creditors about the SBRP is agreed and fixed up-front.
First you appoint a small business restructuring practitioner who needs to be a registered liquidator. They will act on your behalf during this process and ensure you are compliant with the following:
- Employee entitlements that are due have been paid, excluding leave and other entitlements not currently due to be paid.
- Tax lodgements are up to date.