An insolvency firm new to Aberdeen expects others to follow in its path as more businesses struggle amid the oil and gas downturn.
The arrival of Middlebrooks Business Recovery and Advice in the Granite City is a reflection of the hard times the local economy is going through.
Managing director Claire Middlebrook and Derek Lyttle, who is running the Granite City operation from offices in Bon Accord Crescent, say it is also a timely intervention at a critical time.
Ms 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.
“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 begin to dwindle. At the current (oil) barrel price, they may have to take action.”
The firm also expects a growing number of inquiries from people suffering their own cash flow problems in the wake of the oil price rout, particularly after Christmas.
My 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.”
Ms Middlebrook, who launched her business in Edinburgh at the start of 2015, said her firm was also increasingly hearing from offshore workers needing advice about accelerated payment notices received from HM Revenue and Customs.
Professional services firms in the central belt are “madly pulling people up” to Aberdeen from Glasgow and Edinburgh, she said, adding: “It is happening in all walks – dispute resolution, people trying to get money back or just to service client needs.
“If local insolvency practitioners here don’t take advantage of that, then others will have the same thoughts as us and set up. In the meantime, our best trading point is being here and not just coming up on the train.”
Mr Lyttle said a growing number of businesses of all kinds were needing help to “either downsize or, ultimately, just move on”.
He added: “I am 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.”
Middlebrooks, which also has an office in Glasgow, is hosting two seminars in Aberdeen about solvent solutions for voluntary liquidations.
Aimed at solicitors or accountants acting for corporates, the events will take place at Clydesdale Bank, Queen’s Cross, at noon on both November 29 and December 13.
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