Members’ Voluntary Liquidations for hospitality businesses

A Members’ Voluntary Liquidation (MVL) is an essential liquidation route for solvent companies searching for a strategic, tax-efficient exit. Closing a solvent company with substantial retained profits must be handled with care and under the instruction of a licensed insolvency practitioner. The MVL route is popular for hospitality businesses as it allows shareholders to cash in on their investments and benefit from a range of tax advantages.

You may consider closing your hospitality business as it is no longer required. This may be due to various reasons, such as challenging market conditions, staff shortages, guest volatility, inflation or to focus on another business venture. An MVL is designed to dispose of a business seamlessly and release cash quickly.

If you’re considering closing a hospitality business through the MVL route, you must have retained profits over £25,000 for it to be cost-efficient. The company must also be solvent and therefore, able to settle company liabilities within 12 months of the liquidation date. If your company fails to meet these requirements, we can advise on company strike off/dissolution.

Closing a solvent hospitality business

If you wish to close a solvent hospitality business, you must prepare by bringing company affairs to a close. You may consider settling debts, getting up to date with payments and collecting any debts owed to the company. This reduces the length of the Members’ Voluntary Liquidation process and keeps the costs of administering the procedure to a minimum.

If you wish to discuss the costs of an MVL, the suitability of the procedure, and the timeline of an MVL, get in touch to arrange a free, no-obligation consultation.

MVL timeline for hospitality businesses

The timeline of a Members’ Voluntary Liquidation includes:

Appoint company liquidator – A licensed insolvency practitioner must be appointed company liquidator.

Declaration of solvency – A declaration of solvency is a document that must be signed confirming that the business is in a solvent position according to the company’s financial records.

Liquidation begins – A liquidator will commence the company liquidation process which involves submitting the required documents, notifying the relevant parties and advertising the liquidation in the Gazette.

Profits distributed – Capital distributions are made to shareholders; the company is dissolved, and company records are removed from the Companies House register.

For more information on liquidating a solvent hospitality company, get in touch with a member of the Solvent Liquidations team.

25,000+ Company Directors Supported – Partner Led Service

As the UK’s largest company liquidations provider, our MVL specialists have 35 years’ experience and a track record of supporting over 25,000 directors and counting. With unparalleled sector expertise and a highly experienced partner-led team, we are market leaders.

Solvent Liquidation made a complex process feel simple. Their expertise and support throughout my MVL ensured a stress-free and positive outcome.

Sarah Thompson

The team at Solvent Liquidation were incredibly professional and efficient. They handled my MVL with care, making the entire experience straightforward.

James Patel

I highly recommend Solvent Liquidation. Their clear guidance and knowledge made my MVL process smooth and successful. A fantastic service!

Oliver Williams