Published: 10 February 2020
When a premises licence holder becomes insolvent, the holder of the licence dies, or is no longer entitled to work in the United Kingdom, the premises licences lapses. Unless urgent action is taken the licence can lapse irrevocably, a fact which is sometimes overlooked.
If within 28 days of that lapse appropriate ‘reinstatement’ action is not taken, the premises licence will have gone forever.
Reinstatement can occur in one of two ways:
The date when insolvency takes place is not always obvious, and depends on the nature of the insolvency event, for example a company voluntary arrangement (‘CVA’), compulsory liquidation or administration. To avoid missing the 28 day window contact one of our licensing solicitors immediately there is a proposed insolvency.
Sadly, with the COVID-19 pandemic and restaurants across the UK dealing with the highest level of inflation since 1981, the number of insolvencies, and in particular CVAs has risen dramatically. We have assisted many licensed businesses to protect their licences from lapsing during these difficult times.
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