QUARTERLY rent bills, due for payment at the end of December, could spell the end for struggling Sheffield firms, according to corporate recovery expert Andy Wood.
Mr Wood, regional chairman of R3 – the Association of Business Recovery Professionals – and a partner with the P&A Partnership, is urging local companies who think they might face financial troubles to seek help before Christmas, instead of waiting to see how things turn out in the new year.

Mr Wood says firms should think now about whether they are likely to have problems paying their next quarterly rent bill – normally due at the end of December – and to start talking to their landlords as soon as possible about the problems they're facing.

"The period around the turn of the year is already regularly a peak for business insolvencies, as companies battle through to Christmas and then fail in the early months of the new year, but these problems could well be significantly exacerbated this year," said Mr Wood.

"Quarterly rent is obviously one of the biggest expenses a company has to pay, and if it already has problems, this can be a decisive blow, especially in the current economic climate.

"Landlords are generally commercially astute enough to accept a proportion of the rent that is due to them, as opposed to none at all, so there may be an opportunity to renegotiate rent terms, through arrangements such as paying on a monthly basis or agreeing a temporary payment reduction or holiday.

"We would strongly urge anyone who feels their company could be facing severe financial problems after Christmas to take action now, and get the sort of professional advice that might help them to continue to trade through 2009 and beyond."


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