Licensed Insolvency Practitioners With National Coverage

Talk to us today in confidence:

0800 9700539
07833 240747
Contact us

Licensed Insolvency Practitioners With National Coverage

0800 9700539
07833 240747

A guide for redundant employees in administration or insolvency situations

In The Style in Administration Rumours

in A guide for redundant employees in administration or insolvency situations Retail What Does Going Into Administration Mean?

In Less than two years after the online fashion store, which was then listed in London, was forced to sell to a family office investor in a fire sale, In The Style is on the verge of going into administration.According to information obtained by Sky News, FTS Recovery is being considered to serve as the company's administrator. Adam Frisby launched the business in 2013.The fast-fashion store has suffered a decline in its financial performance in recent years, despite aligning itself with several well-known social media influencers.The future of its remaining employees, as well as its brand and other assets, will be uncertain following its collapse into administration.According to one source, the process could result in a pre-pack administration that involves Baaj Capital.Before announcing his most recent departure last year, Mr. Frisby made at least two appearances back at the company.In March 2023, Baaj Capital purchased In The Style, which had previously been valued at over £100 million, for just over £1 million.In 2019, it went public on the junior AIM market in London.

Read
In The Style in Administration Rumours

Royal Stafford Pottery Goes Bust

in A guide for redundant employees in administration or insolvency situations What Does Going Into Administration Mean?

Royal Stafford based in the Royal Overhouse Manufactory, one of the oldest pottery factories in Burslem has collapsed into liquidation. The Stoke-on-Trent pottery business employed some 70 people.The Royal Stafford brand was established in 1845 and the firm described itself as one of the handful of potteries with all production taking place in England."This must be a wake-up call for decision makers," said Colin Griffiths, GMB senior organiser. "The loss of Royal Stafford is a huge blow to workers and the entire community here in Stoke."Our city cannot power its kilns with wind and batteries; wishful thinking means spiralling energy costs are now pushing the sector over the edge."Meanwhile the illegal importing of foreign forgeries is out of control and driving down orders even further."Our ceramic and pottery industry is vital for economic growth and supports thousands of jobs across the UK."The time for warm words is over, now we must see action." Why has Royal Stafford gone into liquidation rather than administration? The most probable reason is simply that there was unlikely to be any buyer for the business.  For a company to go into administration the insolvency practitioners have to show that the return to creditors would be better in administration than in liquidation ie "a better result".  Administration can be expensive so there has to be a reasonable prospect of this. 

Read
Royal Stafford Pottery Goes Bust

Electric Delivery Company Zedify Goes Into Administration

in A guide for redundant employees in administration or insolvency situations What Does Going Into Administration Mean?

Zedify, the UK's largest electric freight bike delivery network, has gone into administration, resulting in the loss of over 100 jobs.Zedify, founded in 2015, provides zero-emission last-mile logistics services to businesses such as high-street stores, package carriers, and independent businesses.The investment came after Zedify received a £5 million funding round in March 2023 from the same investors, including Barclays Sustainable Impact Capital and Mercia, which enabled the company to grow from 113 to 209 people and sign sponsors such as Hello Fresh, Selfridges and Veja.However, despite increased demand for sustainable delivery services, the company was unable to secure enough finance to continue operations. As a result, on January 31, it appointed Interpath's Will Wright and Steve Absolom as Joint Administrators of Outspoken Logistics Limited, also known as Zedify.The company's hubs in Cambridge and Edinburgh remain operational, with 38 staff retained while the Joint Administrators look into future options for these locations. Furthermore, the Bristol hub is run by a separate legal corporation and continues to operate.However, the Joint Administrators have begun an orderly wind-down of the remaining business and have closed seven of the company's trading centres. As a result, 105 individuals have lost their jobs.Ravi Patel of Interpath, who is handling the sale of the company's business and assets, stated: "Zedify was considered a pioneer within the logistics market, being the UK's first cargo bike delivery service with a zero-emission, last-mile delivery model. We are working to explore all options and are seeking buyers for the business and its assets, including its fleet of electric bicycles and their associated intellectual property, as well as the Zedify brand."Steve Absolom, Interpath's Managing Director and Joint Administrator, stated: "We understand news of the company's insolvency will be devastating to its team of employees. We'll endeavour to provide support to those impacted by redundancy, including assisting them with claims to the Redundancy Payments Service."

Read
Electric Delivery Company Zedify Goes Into Administration

RBG Holdings Rosenblatt Law’s Owners Likely to Go Into Administration

in A guide for redundant employees in administration or insolvency situations Law

The listed owner of Rosenblatt law firm is likely to go into administration after rescue talks failed, the company announced today.RBG Holdings was in talks with its founder and largest shareholder Ian Rosenblatt and another party to resolve its boardroom issue.The board ‘regrettably’ informed the London Stock Exchange today that while talks with Rosenblatt Law Limited, a new firm co-founded by Ian Rosenblatt, were progressing, conversations with the other party had terminated.Considering the company's financial position and the lack of progress on the various strategic options explored, the board believes it is unlikely to secure the funding it needs in a timely manner to secure the company's future and is now taking action to protect value in the business for creditors and other stakeholders.The board proposed a share trading suspension starting this morning.RBG Holdings, which owns London lawyer Memery Crystal, said it continued to trade and had the support of its key creditors earlier this month while exploring balance sheet strengthening alternatives. Even though RBG and Rosenblatt had fought days earlier, talks began with Rosenblatt Law Limited. Rosenblatt claimed the company was insolvent, while RBG terminated his consultant arrangement for ‘offensive actions unbecoming of a solicitor’.RBG was optimistic and indicated it would have enough funds for the foreseeable future if possible purchasers agreed. If its primary creditors cannot agree, the company must quickly pursue alternative financing options.RBG would suffer its ultimate blow if it entered insolvency after four years of boardroom battles and a falling share price. Even after an early post-IPO rally in 2018, when acquisitions pushed shares to 160p. The share price closed yesterday at 0.89p.If you are a struggling law firm then we can help.Read our Lawyer Help Pages

Read
RBG Holdings Rosenblatt Law’s Owners Likely to Go Into Administration

Quiz Clothing In Administration Rumours

in A guide for redundant employees in administration or insolvency situations News Retail What is a CVA (Company Voluntary Arrangement)?

Update 20th FebruaryIt has been confirmed that Quiz has gone into administraton with the loss of approximately 200 jobs.  23 stores will close.Sky News has reported that Quiz, which is chaired by the former JD Sports chief Peter Cowgill, is lining up Teneo as administrator in a move expected to take place before the end of next week. According to reports, Quiz is purportedly looking to close up to one-third of its stores in order to stabilise its struggling business and reduce costs.The fast fashion chain, which now employs about 1,500 could lose hundreds of jobs as a result of the move, which was lead by the founding Ramzan family.Quiz has hired restructuring specialists at Teneo to investigate its possibilities. Quiz is scheduled to delist from the London Stock Exchange's AIM market and return to private ownership after a shareholder vote earlier this month.Possible actions to help with the closures include a company voluntary arrangement (CVA) or pre-pack administration.A person familiar with the matter told the Telegraph who originally broke the story that "nothing is being ruled out," and that a decision is anticipated in the upcoming weeks.Since taking over as CEO in March 2023, Sheraz has reportedly concentrated on reducing expenses by selling off the chain's underperforming locations.With only £2.3 million in liquidity, including £400,000 in cash reserves and £1.9 million in undrawn banking facilities, Quiz disclosed in the lead-up to Christmas that it was on the verge of going bankrupt.Sheraz's father, Tarak, who started Quiz in 1993 with just one store in Glasgow, gave the business an emergency loan of £1 million last summer. Quiz is now frantically looking for additional finance, probably on harsher conditions, as HSBC is apparently unwilling to continue backing the company.In contrast to its £2.3 million profit the year before, Quiz reported losses of almost £7 million last year. The job of leading the retailer through its turnaround has been placed on chair Peter Cowgill, a former manager of JD Sports.In the upcoming weeks, a formal announcement on the company's future is expected.With Poundland and now Quiz are we going to see a string of retail failures?  At least a CVA gives the company a good chance of continuing to trade

Read
Quiz Clothing In Administration Rumours

Poundland in CVA rumours

in A guide for redundant employees in administration or insolvency situations News Retail What is a CVA (Company Voluntary Arrangement)?

Sky News has reported that Polish-based Pepco Group, which has controlled Poundland since 2016, has recruited AlixPartners, the retail experts, to handle a sales dip that has prompted worries about company's future.  The company operates over 850 sites and employs 18,000 staffLike for like sales were down 7.3% over the crucial Christmas period.AlixPartners is understood to have been formally engaged last week, with options including a company voluntary arrangement (CVA) or restructuring plan said to have been discussed by a range of advisers on a highly preliminary basis.In its trading statement, Pepco said that Poundland had suffered "a more difficult sales environment and consumer backdrop in the UK, alongside margin pressure and an increasingly higher operating cost environment"."We expect that the toughest comparative quarter for Poundland is now behind us - the same quarter last year represented a period prior to the changes made within our clothing and GM [general merchandise] ranges - and therefore, we expect the negative sales performance for Poundland to moderate as we move through the year."​The company is said to be looking at multiple ways to improve its cash position by selling more goods over £1 to expand its range of products.The mere fact that it has been leaked that a company voluntary arrangement (CVA) has been discussed is pertinent.  The reason is because talk of a CVA can be a very useful tool to put pressure on landlords to consider rent reductions.  Under a CVA the retailer can exit leases, at no cost, leaving landlords out of pocket.  To understand a bit more about this please read our CVA and retailers article.Of course it is also likely that the company will come under extra pressure from the increases in minimum wage, NI increases and the loss of 75% business rates relief.Since the cost of living crisis there has been strong competition from other discounters like B&M and Poundstretcher.  Poundstretcher themselves used a CVA to reduce costs. They exited in 2022 paying just 12p in the £1 to its unsecured creditorsIf such a big retailer were to fail this would send shockwaves through the sector and would be a political headache for the Labour Government.​​

Read
Poundland in CVA rumours

Wine Rack and Bargain Booze Looking At A CVA

in A guide for redundant employees in administration or insolvency situations Retail What is a CVA (Company Voluntary Arrangement)?

Bargain Booze and Wine Rack off-licences are looking to use a CVA to exit vacant shops according to Sky News ReportsThe shops are owned by Bestway Group, one of Britain's largest privately owned enterprises.  After Conviviality collapsed in 2018, it bought the estate for £7m.One real estate insider said landlords' refusal to compromise prevented the company from exiting the leases.The sources said PricewaterhouseCoopers will lead the CVA before Christmas.Bestway's 200 locations are mostly Bargain Booze and Wine Rack.The threat of a CVA may well put pressure on the landlords to reduce the rent. This is a well known tactic of retailers who need to exit loss making sites. For more information on Retailer CVAs see this page.Bestway operates food wholesale, Well pharmacies, cement, real estate, and United Bank, Pakistan's largest lender.

Read
Wine Rack and Bargain Booze Looking At A CVA

Edinburgh Based Hickory Goes Into Administration

in A guide for redundant employees in administration or insolvency situations Hospitality

Hickory, a Scottish catering and hospitality firm, has gone into administration, with a 100 Jobs at risk.Hickory, a restaurant founded in 2012 in Edinburgh, caters for special occasions including weddings and private and business gatherings. Additionally, it serves festivals like the Scottish Open, Borders Book Festival, and Royal Highland Show.The company entered administration on November 20th, according to documents filed with Companies House. Opus Restructuring & Insolvency has been appointed, and Mark Harper and Charles Turner are currently investigating the options available to Hickory and its creditors.Like many other hospitality businesses the company has had difficulty recovering from the lockdowns in the UK during the Covid pandemic. According to its most recent records submitted to Companies House, the company had an average of 142 employees in 2023.As a result, there was a period of weak trading and margins, and working capital was severely strained. This resulted from the cost of living crises, rising interest rates, and inflation.Last year's turnover was £5.6 million, however a number of cash flow issues led to the decision to hire administrators.In its most recent financial statements, Hickory reported that its debtors owed £2.5 million within a year, up from £1 million the year before. The amount of trade creditors increased from £560,000 to £1.1 million.Harper said: “We are working closely with the directors and a number of stakeholders to ensure continuity of the forthcoming events.” This includes weddings, charity balls and staff parties.The hospitality industry is reeling from the aftershocks of the pandemic and the war in Ukraine. The latest rises for employers national insurance has meant confidence in the industry is at a low ebb.

Read
Edinburgh Based Hickory Goes Into Administration

Iberica In Administration Threat

in A guide for redundant employees in administration or insolvency situations Hospitality

Iberica, the upmarket chain of Tapas bars, has filed an intention to appoint administrators. This should give them a breathing space of 10 days whilst a rescue plan is formulated. According to Sky News RSM Tenon are the expected administrators.Iberica have 4 restaurants in London and 1 in Leeds.Iberica is the latest in a line of businesses that have struggled recently such as TGI Fridays and Pizza Hut.Hospitality businesses are bracing themselves for higher costs next year with the minimum wage and increases in employers national insurance payments.Brydg Capital holds a floating charge and so will have approved the notice of intention to appoint administrators 

Read
Iberica In Administration Threat
dealershp

Motorcyle Dealer Marsh Goes Into Administration

in A guide for redundant employees in administration or insolvency situations Pre Pack Administration Process and Procedures

Major motorcycle dealer in the South West, Marsh Holdings Ltd, which ran the Yamaha dealership and the Marsh Garages Used Car Centre in Exeter, the Triumph and Harley-Davidson showrooms in Plymouth and a Harley-Davidson outlet in Southampton has gone into administration.Administrators at Westcotts Business Recovery, in Exeter, have been appointed. ​They have this notice on their website  We respectfully ask that any queries are directed to the proposed Administrators, Westcotts Business Recovery, 26 -28 Southernhay East, Exeter, Devon, EX1 1NS (Tel: 01392 288555) as is the norm in these sad and difficult circumstances.  The company employed 62 people at its showrooms and had a turnover of £30m.The company blamed very difficult trading conditions due to a number of factors.  Poor weather, cost of living, oversupply of stock, recent uncertainty surrounding Labour's first budget.

Read
Motorcyle Dealer Marsh Goes Into Administration

Typhoo Tea In Administration Threat

in A guide for redundant employees in administration or insolvency situations Notice of Intention to Appoint Administrators

One of the Britain's oldest tea companies has filed an intention to appoint administrators in the court.This follows a very difficult year with sales falling and an expensive break in at one of its factories.  Sales fell from £38m to £25m in 2023 and it had to take an exception cost of £24m relating to the damage of stock and equipment following the break in.The company was founded in 1903 by grocer John Sumner and was at one time the best selling tea brand in the UK.It should be noted that the intention to appoint administrators is a way of protecting the company from aggressive creditor actions, such as winding up petitions.  It gives the company protection for 10 days whilst it tries to rescue the business.  This might be additional finance or a sale.  EY is named as the possible administrator and will be looking at the options.Private equity firm Zetland Capital has been the company’s majority shareholder since 2021. Typhoo’s debts stood at £73m at the end of September 2023, compared to £53m a year earlier.According to the company's accounts it has made losses in excess of £40m every year since 2019.    

Read
Typhoo Tea In Administration Threat

Homebase Has Gone Into Administration

in A guide for redundant employees in administration or insolvency situations Pre Pack Administration Process and Procedures

Homebase, the hardware and home improvement retailer has gone into administration with Teneo, It has been reported that The Range, the privately owned general merchandise retailer, are near to closing in on a rescue deal, via a pre pack deal which would save approximately 1,500 jobs for Homebase. The Range has become one of the fastest-growing retailers in the UK, founded in 1989 and now has 210 stores to its name, across the country. There was also interest received from other DIY rivals, discount food retailers and high street brands, as per sources. Hilco have been working on this sale for a few months now, with hope something will come to fruition. Such a deal would end the six years of ownership from Hilco. Back in 2018 Hilco rescued Homebase from trouble via a Company Voluntary Arrangement process - so this is of course not the first time Homebase have been in difficulty.  The DIY market has been facing headwinds from the cost of living crisis and recent uncertainty about the economy.

Read
Homebase Has Gone Into Administration