ICSM Business – Publishing Industry Insolvency News: suppliers concerned as HMRC issue a winding up petition for The Lady magazine

By Harry Mottram: News that Britain’s longest running women’s magazine has been hit by a winding up petition will have sent shivers through the suppliers to The Lady magazine. Ian Carrotte of ICSM -  - the business membership group dedicated to fighting bad debts and late payers with many members involved in the print industry sectors – said: “This unwelcome news be greeted with concerns through the industry as it is a red flag for all accounts departments. The question will be would you trade with a firm in the position The Lady finds itself as the taxman doesn’t take prisoners.”

Writing in The Daily Telegraph James Warrington reported: “HMRC has issued a winding-up petition against The Lady, which was first published in 1885, over back taxes worth £360,000. The petition has been served as the magazine is unable to repay its debts, which largely relate to unpaid income tax and national insurance since the pandemic. A hearing has been set for April in the High Court.”

An HMRC spokesman said: “We take a supportive approach to dealing with customers who have tax debts and only file winding-up petitions once we’ve exhausted all other options, in order to protect taxpayers’ money.”

Ben Budworth, publisher and chief executive of The Lady, said: “We’ve been adhering scrupulously to the payment plan that we’ve been given and have no qualms whatsoever that we’re playing the game as instructed. The winding-up petition is more to wind us up than to wind up the company. It’s probably fair to say that HMRC’s paperwork after Covid is more widely distributed than The Lady magazine.”

According to media reports The Lady’s latest accounts show it had £1.7m in liabilities at the end of 2022, although is thought to be currently in profit despite making heavy losses during Covid. It’s owners have been embroiled in some controversy in recent times having sold its offices on Bedford Street in Covent Garden, which it has occupied since 1885, for £12.4m back in 2019. Mr Budworth moved the publication to an industrial estate in Borehamwood near Watford and installed his wife Helen as the editor.

Ian Carrotte of ICSM - - the business membership group dedicated to fighting bad debts and late payers with many members involved in the publishing and printing sectors – said: “This is very concerning to suppliers who will see a red light here. The Inland Revenue doesn't do things by halves so something is amiss. We advise suppliers in this situation to insist on payment up front with an order until things settle down."

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