Small business restructuring (SBR), introduced in January 2021, has morphed from a helpful mechanism for small businesses into a trap that business owners need to be wary of when tackling financial distress.
Eddie Griffith, Affiliation for Business Resilience and Turnaround (ABRT) chair, said the original intent of the SBR process was to give viable small businesses a faster, cheaper restructuring option without handing full control to a liquidator.
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“Nearly five years on it has become a hunting ground for unqualified salespeople, unethical commission agents and offshore call centres pushing false hope to desperate directors,” he said.
“Unregulated lead…