BT 37 06 Real Deal in liquidation

The not-for-profit organisation, set up six years ago, has experienced severe cash flow problems over the last 18 months. The directors embarked on a cost cutting and recovery programme in March of this year in an attempt to trade out of the problems, to no avail.

Don Bailey comments: “Despite the hard work carried out by the remaining management team and staff under very difficult conditions, and there is no way for the company to remain a financial viability.”

The company’s funders and stakeholders, particularly the New Heart for Heywood NDC Partnership and Rochdale MBC, have been highly supportive during the difficulties and have continued to fund project activities. However, it has not been possible to generate sufficient additional income for the company to service its debts.

Real Deal director, Janet Lawrence, said: “It is a very sad day for all of us. Real Deal has done a lot of good work in Middleton and Heywood and could have continued this for many years. But the level of debt - much of which was incurred without the knowledge of the board - leaves us with no choice.”

Ends


Press contact:
Joanne Fletcher-Wall
Bell Pottinger North
01625 506425

Information on Begbies Traynor can be accessed via the Group’s website at
www.begbies-traynor.com

Notes to editors:

About Begbies Traynor Group plc

The Group specializes in business insolvency management and is becoming increasingly active in the area of personal insolvency. It also offers services in corporate rescue and investigation services and has entered the field of corporate finance.

In November 2005, the Group entered the rapidly-expanding volume personal insolvency market via the acquisition of W3 Debt Solutions, a firm specializing in providing advice and practical support to individuals in debt.

The Group has grown to its current network of 32 nationwide offices ranging from Scotland to the South West of England, with 350 operatives. The Company continues to pursue its strategy of organic development, coupled with the acquisition of specialist knowledge of both individuals and firms, to further increase its market share in its core services.

The Directors believe that the Group is the UK's largest independent insolvency, corporate rescue and recovery specialist with clients ranging from major institutions to individuals with business difficulties.

The Office Network

The Group operates with 60 licensed insolvency appointment takers, some 225 fee earning staff and 65 in support and administration. The Group operates from 32 locations across the UK.

Business Activities

The core business of the Group is the formal administration of insolvencies including receiverships, liquidations, administrations, company voluntary arrangements and business-related personal insolvencies. The Group has extended its activities into a range of consultancy services including corporate rescue, credit management, forensic and investigation services and corporate finance.