New insolvency firm expects others to follow in its path to Aberdeen

An insolvency and business recovery firm new to Aberdeen this year claims that its arrival in the city has provided timely extra energy to the area’s insolvency sector as the impact of languishing oil prices continue to take their toll.

Claire Middlebrook, managing director of Middlebrooks Business Recovery, says she fully expects others will follow her firm’s lead in Aberdeen as more businesses struggle amid the North Sea downturn.

She said that she has herself become aware that professional services firms from the Central Belt are “madly pulling people up” from Glasgow and Edinburgh.

“It’s happening in all walks, dispute resolution, people trying to get money back, or just to service client needs” she said. “If local insolvency practitioners here don’t take advantage then others may have similar thoughts to us and set up. Our top trading point is being here and not just coming up and down by train.”

The firm’s business recovery director, Derek Lyttle said a growing number of businesses needed help to “either downsize or, ultimately, just move on”.

He added: “I’m getting to know younger firms because older ones already have insolvency practitioner networks. I am chapping doors which I believe is the best way to gain traction in Aberdeen. Our success will come from competitive fees and the speed we get things done.”

Mrs Middlebrook said: “You need to go back many years in Aberdeen to find someone brand new providing insolvency services. To be fair it has not been required, except where you had to be efficient at taking cash out of a business or in the case of retirement.

“Here in Aberdeen insolvency is always going to be a bad word, because they’re not used to it. There was a bubble in which industry and commerce were able to make a lot of money from oil and gas. Next year, I believe some companies with strong cash reserves may see those dwindle. At the current oil barrel price, they may have to take action.”

Now, Mrs Middlebrook said her firm was increasingly hearing from offshore workers seeking advice about accelerated payment notices received from HMRC.

The firm also expects a growing number of inquiries from people suffering personal cash flow problems in the wake of the oil price rout, particularly after Christmas.

Mr Lyttle said: “Last year, there was still cash to spend on presents. People won’t have that cash this year but the kids want what kids want, so January or February could be busy.”

Mrs Middlebrook explains that solicitors and advisors were starting to share their frustrations at the high fees charged in the past for corporate insolvency and personal bankruptcy.

She added: “Our fee policy provides certainty for creditors that they can recoup a decent percentage of losses. And firms in Aberdeen who launch creditor driven insolvencies are impressed we are standing by our commitment. We charge a standard fee of £3,000 which is in line with our fees for work instructed by HMRC. I’m pleased to say this is what is starting to win us business.”

Middlebrook, which operates from offices in Bon Accord Crescent, is to run a series of seminars in the Granite City about solvent solutions for voluntary liquidations.

They will take place at Clydesdale Bank, Queen’s Cross, at noon on November 29th and December 13th and are aimed at solicitors and accountants acting for corporates.