Wedding venues hit by insolvency – implications for consumers and venues

A local interest insolvency story with interesting implications for both consumers and venues

We spotted a local story about a heartbroken bride-to-be, who fears she may have lost thousands of pounds after her wedding venue went into administration without warning.

A stressful situation for everyone involved.

What does this mean for each of the parties involved, and what actions are open to them?

Implications for the client

• When a company enters administration, an insolvency practitioner is appointed to manage its affairs. The client should contact the insolvency practitioner as soon as possible to understand the position of the venue, and whether or not they will honour existing bookings
• Review the terms and conditions of the booking to see what happens in case of cancellation or business failure and recourse might be open to them. Likewise, check any insurance policy in place to see if it covers venue insolvency.
• If the venue owes the client money, they may be able to register as an unsecured creditor with the administrator, although this is not a guarantee that money will be refunded
• Hire expert legal advice

Hiring expert legal advice is the common denominator

For a venue facing financial difficulties or potential administration, Leverets can provide assistance in the following ways:

1. Insolvency and Restructuring Advice:
   • Assessment of Financial Position: Analysing the venue’s financial health to determine viable options, such as restructuring or entering a CVA.
   • Guidance Through Administration: managing the process and aiming to protect the business and its assets.

2. Contractual and Legal Protection
   • Review of Client Contracts: Ensuring that existing contracts include clauses that protect the venue in cases of unforeseen circumstances, potentially mitigating legal liabilities,
   • Risk Management: Advising on legal strategies to minimise exposure to lawsuits from clients and creditors.

3. Communication and Reputation Management
   • Legal Communication Support: Assisting in drafting clear and legally-sound communications to clients regarding the venue’s status and any changes to their bookings.
   • Dispute Resolution: Offering mediation services to resolve conflicts amicably, preserving the venue’s reputation and client relationships.

4. Representation in Legal Proceedings
   • Defence Against Claims: Providing legal representation if lawsuits arise, aiming to protect the venue’s interests and achieve favourable outcomes.
   • Pursuing Claims: Assisting in recovering debts owed to the venue, improving its financial standing.