Various news outlets have reported on the recent administration of Aromantic Limited, the Forres-based supplier of natural and organic cosmetic ingredients. Christopher Horner and Kevin Pinkerton of BusinessRescueExpert, part of the wider group behind Lennox Insolvency, were appointed joint administrators.

---

Aromantic had served makers of cosmetics and skincare products for nearly three decades. Over the summer, Chris and Kevin worked with the director to explore ways for the business to continue trading or be sold as a going concern. Despite best efforts of the director and BRE, those routes did not prove possible. The company ceased trading in September 2026, and Kevin and Chris, as administrators, secured a sale of its stock, websites and online platforms to an unrelated party.

The closure also meant 11 employees lost their jobs immediately before the administration. It is a difficult outcome for a long-standing family business, and we recognise the impact on the people affected.

Although pleased to see Chris and Kevin’s Scottish work recognised in the business press, we are disappointed that a going concern sale could not be acheived. This case shows the importance of testing rescue options early and dealing with the remaining value carefully when those options cannot be made to work. Lennox brings that practical experience to directors across Scotland from our Glasgow office. plan exists to meet obligations as they fall due, not whether the spreadsheet balances neatly.

---

If closure is a real possibility, staff need accurate information about their work and pay. The message must reflect what has actually been decided. Do not announce a liquidation that has not been agreed, and do not reassure people that wages or jobs are secure if the company cannot support that promise. Plan the conversation with an insolvency and employment adviser where time permits.

---

Establish what is known before you speak

Write down the present position: whether the company is still trading, whether payroll can be met, which roles may be affected, and when a decision is expected. Keep a clear distinction between a possible closure, a proposed redundancy and a confirmed termination. Decide who will answer employee questions and when the next update will be given.

If you cannot yet say whether wages will be paid on time, acknowledge the uncertainty and give a date for the next update. Do not ask staff to continue working on the basis of a payment assurance the company has no realistic means to honour. Take prompt advice on any immediate employment and trading decision.

---

Use clear language without promising an outcome

A first message might say, if it is true: “The company is reviewing its financial position with professional advisers. We have not yet made a final decision about closure or roles. We will update you by [date]. We will tell you separately if there is a change to your pay or work arrangements.”

If a decision has already been made, say so. Do not use the example above to imply that consultation or alternatives remain open when they do not. Explain who staff can contact privately about wages, leave or an urgent personal concern. Follow a spoken update with a short written record so the facts and next date are clear.

---

Check the consultation obligations

An insolvency risk does not remove employment responsibilities. Where 20 or more redundancies are proposed at one establishment within a 90-day period, collective consultation and notification rules apply. Smaller numbers also require careful individual handling. The timing, representatives, information and notices need employment advice in the circumstances of the case, especially where cash or a proposed appointment creates urgency.

Consultation should address the proposal and any realistic ways to avoid or reduce redundancies. It is not simply an announcement. Keep records of what was proposed, what staff were told, their questions and the board’s response.

---

Prepare pay and employment information now

Check each employee’s pay, start date, contracted hours, unused holiday, notice terms and any arrears. Reconcile payroll records with bank payments. This information helps advisers assess options and may later support employee claims. Keep it securely and make sure someone can access it if the company ceases trading.

If the employer enters formal insolvency and cannot pay statutory entitlements, eligible employees may be able to claim certain amounts through the Redundancy Payments Service. The insolvency practitioner supplies a case reference number for an application. The availability and amount of any payment depend on eligibility and the particular claim; avoid telling staff that the government will automatically pay everything they are owed.

Our Employees and Redundancy page explains the main issues in more detail. A director’s own potential redundancy claim is a separate question and should not be presented as part of the staff briefing.

---

Should we wait until liquidation is certain before telling staff?

The timing depends on what is proposed and what employees need to know about work and pay. Do not conceal a present inability to meet payroll behind vague reassurance. Get advice promptly on consultation and the next accurate update.

---

Can staff apply for redundancy pay as soon as closure is discussed?

Discussion of possible closure is not itself a formal insolvency or a redundancy. Claims through the Redundancy Payments Service have eligibility and process requirements, including a case reference after formal insolvency. Explain the current stage accurately.

Rescue is possible when the underlying business has a credible future and can fund the steps needed to reach it. The test is more demanding than believing that sales will improve. Directors need to know what cash the company requires, what creditors must agree to, and how the plan will work if a hoped-for payment arrives late.

---

1. Is the underlying business making money on its work?

Look at recent jobs or contracts after their direct costs, not just turnover. Are prices sufficient? Are losses caused by a temporary shock, or will every additional order consume more cash? A rescue plan needs to address the cause of the losses. A payment plan for old debts cannot fix a business that continues to lose money on new work.

---

2. Can the company fund the next few weeks?

Prepare a short cash forecast based on receipts you can reasonably expect, with payroll, tax, rent and essential suppliers shown on their due dates. Test what happens if the largest receipt is delayed. A profitable order book does not pay wages today unless the company has cash or reliable funding to complete the orders and wait for payment.

This is often the point at which directors need to decide whether taking further work would worsen creditors’ position. Take advice before making a commitment the forecast cannot support.

---

3. Which creditors would need to cooperate?

List the creditors whose support is necessary to keep operating: HMRC, a secured lender, the landlord, key suppliers and any creditor taking formal action. Ask what each would need to agree, by when, and whether the company can meet the proposed terms. An informal arrangement may help with a short disruption, but it does not bind a creditor who has not agreed and can be withdrawn.

An HMRC Time to Pay proposal requires payments the company can actually afford. A company voluntary arrangement is a formal proposal supervised by an insolvency practitioner and depends on creditor approval. Neither turns an unviable forecast into a viable one.

---

4. Where would the new cash come from?

If the plan relies on new investment, a sale of an asset, refinancing or a director’s own money, identify the amount, date and conditions. Is funding committed or merely being discussed? Would new security or a personal guarantee be required? A rescue that works only if an uncertain lender responds tomorrow is not yet a funded plan.

---

5. Are customers and operations likely to remain in place?

Consider whether important contracts can be delivered, key staff and suppliers will remain available, and customers will continue to place orders. A business can have valuable assets but no practical route to trade through the next month. Equally, a buyer interested in the business may create options that merit urgent discussion with an adviser.

---

6. Can the board act within the time available?

Put dates against each required step: a creditor response, funding decision, payroll run or court hearing. Decide who owns the cash forecast and who will speak to creditors and advisers. If a plan depends on more time than the company has, the board needs to consider an orderly closure alongside any rescue proposal.

---

Match the route to the evidence

The options include creditor negotiation, Time to Pay, a CVA and, in some cases, administration. Their purposes, costs and effects differ. An adviser can test which is realistic against the six answers, rather than selecting a procedure from its name. If the company cannot fund continued trading or reach a workable agreement, a Scottish creditors’ voluntary liquidation may be the responsible route.

Does having orders mean the company can be rescued?

Orders matter only if they can be completed at a viable margin and funded until customers pay. Forecast both the profit and the cash needed to deliver them.

Can we decide this from last year’s accounts?

Historic accounts help explain what happened. The immediate decision needs current cash, liabilities, a realistic forecast and the deadlines the company faces now.

You can have a useful first insolvency conversation without a finished set of accounts. The most helpful information is what the company owes now, what cash is likely to arrive, whether it can keep trading, and which decisions are urgent. Bring what you have and be clear about what is missing.

---

Begin with a one-page account of the problem

Write down what has changed and when. Has a major customer failed to pay? Has HMRC refused an arrangement? Is payroll at risk? Has a supplier stopped credit or has a creditor served formal papers? Say what you need to decide this week. That gives the adviser a starting point before anyone gets lost in historic figures.

If several people are directors, identify who can answer questions about finances, employees and operations. Mention any imminent board, court or creditor deadline at the start of the call. realistic plan exists to meet obligations as they fall due, not whether the spreadsheet balances neatly.

---

Bring the figures that show whether trading is possible

The following are useful even if they are provisional:

• The latest bank balances and recent statements, including any overdraft limit and whether it remains available.
• A cash forecast, however simple, showing expected receipts and payments over the next few weeks.
• The latest management accounts or year-end accounts, plus a current list of customers who owe money.
• A list of creditors, amounts owed, dates due and any agreed payment arrangements.
• Details of work in progress, stock, equipment and property, together with the cost of completing customer orders.

Separate a genuine committed receipt from a hopeful sales forecast. If you do not know a number, say so. An adviser can help identify which missing figure matters first.

---

Show the documents behind the immediate pressure

Keep the original wording and dates of HMRC correspondence, a statutory demand, a Scottish winding-up petition, a landlord’s notice or papers from sheriff officers. Bring loan and security documents if a lender has threatened action. A photograph or PDF of the notice is more useful than trying to remember its terms.

Do not wait to assemble a full file if a response deadline is close. Contact an adviser with the document in hand and follow up with the remaining records.

---

Include the people and personal questions

Say how many employees there are, when wages are due, whether any pay is already outstanding and whether redundancies have been discussed. Keep payroll records and employment information available. They will matter if a formal insolvency follows, but they also affect the immediate trading decision.

Tell the adviser about personal guarantees, any overdrawn director loan account, money recently introduced by directors, and any proposed transfer of company assets. A company’s debts and a director’s personal exposure are different questions. They need to be considered alongside the options for the business, not discovered after a decision is made.

---

Know what you want from the call

It helps to ask the adviser to distinguish three things: what must be done immediately, what needs more information, and what can be decided later. Useful questions include:

1. What is the main risk in continuing to trade this week?

2. Which figures or documents would change your assessment?

3. What options could preserve a viable business, and what would have to be true for them to work?

4. If closure is needed, what happens first in Scotland?

5. Who would handle the next stage, and on what proposed fee basis?

You should leave with a clearer list of actions, even if the eventual route cannot be chosen in one call. The Insolvency Service recommends professional advice where a company is in financial difficulty; Scottish voluntary liquidation also has specific steps for shareholders, directors and creditors.

---

Should I delay until the accountant has finished the accounts?

No, especially if cash, wages or a creditor deadline is pressing. Current bank information, a creditor list and an honest explanation of what is uncertain are enough to begin. Your accountant can help fill the gaps afterwards.

If your company cannot meet every payment due this week, start by finding out exactly what is due, what cash will arrive, and whether any creditor has already taken formal action. Record the board’s decisions and get advice before making commitments the company may not be able to keep. You do not have to choose a liquidation procedure before that first conversation.

---

Work out the immediate cash position

A bank balance is only a starting point. Make a short list covering the next seven to fourteen days:

• Cash in the bank, available borrowing and receipts you can reasonably expect to collect. Separate promised payments from money that is certain to arrive.
• Payroll, rent, suppliers, loan instalments and tax falling due, with the date and amount of each.
• Work already promised to customers, its cost to complete, and any customer money received for work that remains unfinished.
• Arrears, creditor letters and deadlines. Put any HMRC notice, statutory demand, court document or notice of diligence at the top of the pile.

This is a working picture, not a set of perfect accounts. If a figure is uncertain, mark it as an estimate. The question is whether a realistic plan exists to meet obligations as they fall due, not whether the spreadsheet balances neatly.

---

Record what the directors decide

Bring the directors together promptly, even if the business is small. Note the information used, the alternatives considered, any payments proposed and why, and when the position will be reviewed. Keep the underlying bank records, ledgers, contracts and correspondence. A clear record helps an adviser assess the position and shows how decisions were reached.

When a company is insolvent, directors’ priorities shift towards creditors. The Insolvency Service says directors should protect company assets, avoid worsening creditors’ position and consider advice from an insolvency practitioner. That makes hurried decisions about selective payments, new credit, asset transfers or fresh customer deposits particularly important to discuss before acting. The right answer depends on the facts; it is not a rule to stop every payment automatically.

---

Identify the pressure that cannot wait

There is a difference between a supplier asking for payment and a court deadline. Check what each document actually says, when it was received and who issued it. Scottish creditor remedies and court procedures have their own steps. Our Creditor Pressure pages explain common forms of action; if a winding-up petition or bank arrestment is involved, seek case-specific advice urgently.

Tell an adviser about payroll and essential trading costs as well as creditor demands. A business that looks viable on a profit-and-loss account may still run out of cash before its customers pay. Equally, a short cash gap does not by itself tell you which formal process is appropriate.

---

Decide what must happen next

Take the cash list, recent bank information and the most urgent creditor documents to the first call. Ask:

1. Can the company fund the work and obligations it proposes to take on now?

2. What information is missing from the cash forecast?

3. Is a credible short-term agreement with creditors possible?

4. Is there a viable business that could justify a rescue route?

5. If not, what is the orderly way to stop trading and deal with creditors and staff?

The possible routes may include negotiated terms, a formal rescue process or a creditors’ voluntary liquidation. Their availability and timing depend on the company’s circumstances. The first job is to establish a reliable position and avoid losing time on a plan that cannot be funded.

---

Must we stop trading today?

There is no answer that fits every company. Continuing to trade needs to be assessed against realistic cash and prospects and the effect on creditors. Seek advice before taking further orders or incurring costs if you cannot see how the company will meet them.

---

Does a missed payment mean we must liquidate?

No single missed payment selects a procedure. Inability to pay debts when due is, however, one way a company may be insolvent. Get the whole position assessed promptly rather than waiting for every creditor to act.