A guide for redundant employees in administration or insolvency situations


Poundland Likely To Close 100 Shops

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

Update 13th JunePoundland has been sold for 1Euro.  It has been announced that investment firm and former Laura Ashley owners Gordon Brothers have taken the chain on.  The company will go into a court approved restructuring process as part of the deal.  This will mean that all class of creditors, secured and unsecured, will be subject to the courts decisions on how much of the debts they will get repaid.  This restructuring is part of the Section 26A of the Companies Act.Part 26A offers the ability to "cram-down" the plan, meaning the plan can be approved even if a dissenting class of creditors or members objects, provided that certain conditions are met (such as demonstrating that dissenting members would not be worse off under the plan than they would be in an alternative scenario). A restructuring plan under the Act is complex and expensive so is really only suitable for much larger businesses.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.​​

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Poundland Likely To Close 100 Shops
hypersonic plane

Reaction Engines Goes Into Administration

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

​​Reaction Engines, a company working on a hybrid rocket engine that will allow for hypersonic flying, submitted a notice of intention to appoint administrators. The administration will be managed by PwC restructuring specialists.The company was dubbed as being able to launch the "next Concorde" but now 173 of the 208 staff have been made redundant.In a statement PwC said [Reaction Engines] had been “pursuing opportunities to raise further funds, but unfortunately, these attempts were unsuccessful”.Sarah O’Toole, joint administrator and partner at PwC, said: “It’s with great sadness that a pioneering company with a 35-year history of spearheading aerospace innovation has unfortunately been unable to raise the funding required to continue operations.”The Oxfordshire business had been negotiating for a financial lifeline with its shareholders, notably the Strategic Development Fund of the United Arab Emirates.It was hoped that Sabre, the hybrid jet and rocket engine being developed by Reaction Engines, could have allowed hypersonic spacecraft to travel from Britain to Australia in as little as four hours.Reaction's Sabre technology, short for Synergetic Air Breathing Rocket Engine, was first developed in 1989.The company has received several government subsidies in addition to investments from BAE Systems and Rolls-Royce. But it also consumed tens of millions of pounds annually.Last year, the business raised £40 million from investors, including those in the United Arab Emirates, increasing its total capital to almost £150 million.The most recent financial statements show that Reaction's yearly losses in 2022 increased from £18.4 million to £25.7 million, while its sales decreased from £7.2 million to £4.7 million.

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Reaction Engines Goes Into Administration

ISG Goes Into Administration and is the biggest Collapse since Carillion in 2018

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

Update 28th OctoberFirst large casualty of the ISG administration can be seen here https://www.punchline-gloucester.com/articles/aanews/cheltenham-lighting-firm-goes-into-administration​ Update 22nd OctoberAdministrators at ISG have discovered that the company owes some £89m to its trade creditors, with 13 subcontractors owed more than £1m each.​“Keith Steven of KSA Group commented, with over £180m of debt owed to trade suppliers, contractors and subcontractors, this will have hit the construction sector hard. Many creditors will experience trading losses as a result. And with recoveries from the administrators and liquidators work expected to be close to zero or zero, this will have a huge impact on creditors.”.​​​​​​ISG, the construction company and UK Government contractor, has entered administration, making 2,200 workers redundant with immediate effect.Based on turnover, ISG was the sixth largest construction company in the UK, with revenues of around £2.2bn. Despite this, the firm has faced financial strain for some months and attempts to secure a rescue deal failed.ISG Chief Executive, Zoe Price, explained the situation had arisen due to ''legacy issues'' relating to ''large loss-making contracts'' secured between 2018 and 2020.A notable project ISG completed was the Velodrome for the 2012 Olympics. Most recently, the contractor was working on 69 Government projects - 22 of these for the Ministry of Justice.A spokesperson of Ministry of Justice said that contingency plans were in place to mitigate the impact of ISGs collapse. Administrators will be worked with, to ''find alternative ways to deliver these projects where necessary''.As of yet, no administrators have been confirmed as appointed, but rumours are circulating that it will be Ernst & Young.The last time there was a high-profile collapse in the construction sector was in 2018 with Carillion's administration. The aftermath of that collapse was lengthy delays in projects and in addition, increased costs. Is the same going to happen for ISGs paused projects?The collapse of yet another big construction company highlights cracks in the UKs construction industry and certainly raises some questions.Suzannah Nichol, CEO of Build UK (the sector's trade body) remarked, ''While there have been changes since Carillion six years ago, there clearly has not been enough change.''If you are an employee who has just been made redundant, please take a read of our helpful guide here.

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ISG Goes Into Administration and is the biggest Collapse since Carillion in 2018

Remainder of The Body Shop Stores Saved From Closure Amid Administration Rescue Deal

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

Update as per September 2024100+ Body Shop stores have been rescued from closure following an administration rescue deal by a consortium led by Mike Jatania.Mr Jatania is known a 'Cosmetics King'. The deal came from Aurea, his investment firm.Reports share that this new deal will ''steer the Body Shop's revival and reclaim its global leadership in the ethical beauty sector it pioneered''.Sky News report more.End of February 2024According to reports the Body Shop may be using a CVA to exit from administration in order to continue trading.  The administrators have drawn up plans to discuss rent cuts with landlords.  Read our page on administration followed by CVA 20th February 2024The Body Shop has announced that it will close approximately half of its stores, starting with 7 that will close immediately today; Surrey Quays (London), Oxford Street (London), Canary Wharf (London), Cheapside (London), Nuneaton (Warwickshire), Ashford Town Centre (Kent), Bristol Queens Road (Bristol).Along with the store closures, is the cutting of 40% of roles at its London headquarters - leaving around 400 full-time employees.The Body Shop ambassador programme is also going to close. This is the scheme were individuals sell products for a commission.Administrators say the brand's current portfolio is ''no longer viable'' after ''years of unprofitability''. The restructuring will include a renewed focus on the companies' products, online sales channels and wholesale. 13 February 2024Following the reports this weekend, administrators from FRP Advisory have officially been appointed to ''accelerate the restructuring'' of the UK arm of The Body Shop.Administrators will explore all options going forward for the business.Joint administrators, Tony Wright, Geoff Rowley, and Alastair Massey, will continue to trade the business in administration. 12 February 2024It has been reported this weekend that cosmetics retail chain, The Body Shop, is preparing to appoint administrators from FRP Advisory to its UK arm. This comes just six weeks after the chains new owner, Aurelius, took control.It is understood that the retailer experienced weak trading over the festive period and early January, coupled with having insufficient working capital.In the UK, Body Shop has 200 stores to the along with its headquarters in London -It seems unlikely that the British cosmetics, skin-care and perfume company, set up by the late Anita Roddick, will disappear from our high streets completely.  What is likely, is that there will be a focus on reducing its costs and building up a stronger online presence.  The brand still has appeal for its ethical stance and is popular with younger shoppers. Though the process of administration is being explored for the UK operations, the brands global franchise partners are not affected.In fact, very recently, parts of The Body Shop's businesses across Europe and Asia  have been sold to an unnamed family office - according to Retail Week.Will we see The Body Shop appoint administrators? Will there be a change in owners for the fourth time?It is interesting to see that the company has not opted for a Company Voluntary Arrangement.  This may be due to the fact that its problems do not stem from a number of poorly performing stores (which can be exited in a CVA) but to more widespread difficulties.  It is also likely that the owners have security over the assets of the brand.  If they have security then they can appoint administrators and are first in line for any payouts.This news piece will be kept up to date in accordance to current events. You can find out more on this story from BBC News. 

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Remainder of The Body Shop Stores Saved From Closure Amid Administration Rescue Deal

CTD Tiles Has Gone Into Administration – Some Stores Saved By Topps

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

CTD Tiles goes into administration and closes 56 of its outlets.The company's administrators stated that 268 employees were laid off as a result of the failure.Despite the huge number of retail closures, rival Topps Group purchased 30 CTD Tiles locations and two distribution sites in a rescue plan.Topps Tiles has purchased CTD Tiles' brand and intellectual property for £9 million from administration.The tile expert has purchased the supplier's brands, which include CTD Tiles, CTD Trade, and CTD Architectural Tiles, as well as 30 retail outlets, chosen inventory, and all related intellectual property.Topps stated that the retailer is "complementary" to its other businesses and that the acquired stores and assets provide it with "the opportunity to make a meaningful entry into the housebuilder segment and expand its existing share of the architect and designer segment".Topps bought 30 branches that generated £20 million in sales for the fiscal year ending June 2024 and will continue to trade under the CTD brand name. Why didn't Topps Tiles buy the company in a Pre Pack Administration? A pre pack administration sale is possible in these circumstances but the downside is that Topps would have had to take on all the employees via a TUPE process.  By waiting until the administration was started they were able to pick up the assets they wanted.  CTD might have been able to use a CVA to reduce stores but without knowing the make up of the creditors it is difficult to say.  If the business was simply not viable or had significant secured lenders then an administration would have been the correct procedure.If you have purchased goods from CTD then see this page on your rights  

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CTD Tiles Has Gone Into Administration – Some Stores Saved By Topps

Torquay’s Famous Grosvenor Hotel Goes Into Administration

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

The costly refurbishment of the hotel – and its relaunch – has contributed to the hotel’s insolvent state and that of the wider Richardson Hotel Group. Here, we’ll explore what happened to the Grosvenor and what might lie in store for the future of this group.What is the Grosvenor Hotel? The Grosvenor Hotel is a three-star hotel in Torquay. It’s one of the main hotels on Belgrave Road or ‘golden mile’ and has 46 bedrooms. It is part of the Richardson Hotel Group’s portfolio along with five other hotels across Devon and Cornwall. Keith Richardson is the sole owner of the hotel. He bought it from the comedian and entertainer Mark Jenkins in 2012. It cost less than £1m but is still trying to shake the bad reputation it gained during Jenkins’ ownership. Jenkins and the Grosvenor Hotel found fame in Channel 4’s ‘The Hotel’ - a reality show that “followed the exploits of hapless hotelier-turned-events manager Mark Jenkins”. It ran from 2012–2015 and did not seem to benefit the hotel’s reputation. It's now called the John Burton-Race Restaurant with Rooms. The name comes from the hotel's Michelin-starred chef who controls the restaurant. He is not the owner, but he may boost the hotel's reputation. Estimates claim the refurbishment cost over £750,000 and includes:Structural changes Refurbishment of the restaurant Re-designed reception An increase to 50 rooms Plans for a champagne barWhy has it gone into administration? The Richardson Hotel Group went into administration in early January 2018. The five other hotels in the group fell into administration at a similar time. The Grosvenor Hotel is the sixth and final hotel in the group to fall into administration. The administrators for all six hotels are Mark Boughey and Matthew Wild of RSM Restructuring Advisory. All the hotels in the group are still trading. Administrators are discussing sales strategies with Colliers International and may end up selling one or more of the other hotels to finance the continuation of the Grosvenor. Too much money went into the refurbishment, rebrand and relaunch of the hotel. This is why the Grosvenor Hotel and the rest of its group fell into administration. HMRC petitioned the Grosvenor Hotel to wind up the business. But the move to administration has halted these proceedings. However, it’s “business as usual” according to Burton-Race. “This is just a glitch, which will be sorted, I’m not worried. The company has plenty of assets and once one of them is sold, things will go back to normal.” Hopefully, the move into administration will help the Grosvenor Hotel restructure and become viable once more. If not, its liquidation could affect all the Richardson hotels in the area.

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Torquay’s Famous Grosvenor Hotel Goes Into Administration
ted baker

All UK Stores to Close and 1000 Jobs Lost for Ted Baker

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

29th July 2024Ted Baker has now announced that it is to close all its UK stores.8th April 2024Administrators announce that Ted Baker is to close 15 UK stores (of which ''have no prospect of being returned to profitability, even with material rent reductions") and cut 245 jobs.Of this, 11 stores will close by 19 April, resulting in the loss of 120 jobs.Then 25 roles from head office will go along with a further 4 stores, impacting the remaining 100 jobs.For the full list of closing stores:Birmingham Bullring Bristol Bromley Cambridge Exeter Leeds Liverpool One London Bridge Milton Keynes Nottingham Oxford Bicester London Brompton Road London Floral Street Manchester Trafford 22nd March 2024Teneo has been appointed as administrator of No Ordinary Designer Label (NODL) Limited - the company of which runs 46 Ted Baker stores in the UK along with a website and concessions.NODL has approx. 975 employees.Authentic Brands, which licenses the Ted Baker brand to the NODL, is in advanced discussions with potential buyers for the company.Reported reasons for the appointment of administrators are the struggles the firm faced following damage done during a partnership and a high level of arrears built up during a partnership with AARC Group. At the end of January 2024 AARC and NODL cut ties. 19th March 2024 It has been reported that Ted Baker, the clothing retailer, has filed a Notice of Intention to Appoint Administrators. This move is designed to give it a chance of recovery by protecting it from creditors legal actions for a 10 day period.  An injection of capital or a sale is hoped to be achieved during this period.A filed winding up petition (subsequently withdrawn) forced Ted Baker's hand.This latest move comes after the company delisted from the Stock Exchange and was sold to US-based Authentic Brands Group (ABG) for a knockdown price of £210m.  This follows a similar pattern to The Body Shop that was also bought out by private equity and then months later went into administration. Why don't these companies consider using a CVA to lower their debt? The likely reason is that these companies have been loaded with lots of secure debt which cannot be compromised by a CVA.  Property costs, HMRC, and suppliers are unsecured and can be bound by the terms of a CVA.  So, in essence, it wasn't expensive shop premises that have caused problems but indebtness.Ted Baker has suffered, like many other retailers, by the lockdowns, cost of living crisis and has borrowed money to try and survive.John McNamara, chief strategy officer for Authentic Brands Group, said: “We wish that there could have been a better outcome for the Ted Baker employees and stakeholders. We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began.”The company employs more than 900 staff and currently operates 46 stores across the country, as well as online and through department store concessions.There has not been an announcement on any redundancies yet.

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All UK Stores to Close and 1000 Jobs Lost for Ted Baker

Wilko collapses into Administration

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

29 September 2023Sky News share today that after seeing some proposals from PwC, it is likely that unsecured creditors will receive between 4p and 8p in the pound, from the collapse of Wilko.According to the proposals, The Pension Protection Fund (£20m owed as a secured creditor), along with Barclays (£2.4m owed) and Hilco UK (£39.9m owed) are expected to be paid in full. The PPF is also owed monies as a unsecured creditor,13th September 2023The Range has purchased Wilko's brand and online assets for a total of £5m it is understood. An announcement is expected by the administrators later.  The Range was under pressure to buy the assets as it faced increased competition from online marketplace OnBuy.12th September 2023The owner of Poundland has agreed to take on the leases of dozens of Wilko shops.Pepco Group, which owns Poundland in the UK, is expected to convert up to 71 Wilko stores to the Poundland brand.11th September 2023Today we here the news that the rescue deal on the cards with HMV owner, Doug Putman, has collapsed. It is expected that now administrators of PwC will strike deals with The Range and Poundland's owner.The Range is likely to purchase Wilko's brand and online assets, whereas Poundland are in talks to buy 100 stores.5th September 2023B&M has bought 51 Wilko shops (locations not disclosed) for £13 million after the discount retailer collapsed into administration.The shops are set to be rebranded as B&M.  The retailer did not acquire Wilko’s brand name or any of its intellectual property. It said it would provide an update on the timing of the new B&M openings in November.Despite this arrangement with B&M, a further 1,332 jobs have been lost. Across 52 Wilko stores, 1,016 redundancies will take place, alongside a loss of 299 roles at two of its distribution centres and 17 at its digital operations department.Conversations with administrators continue.Sky News report more.31st August 2023The latest update to be heard on the situation with Wilko is that OnBuy, the online marketplace, has made a last minute rescue bid for the brand. As reported in the Retail Gazette, it is thought that OnBuy only want to continue trading through Wilko.com.Just earlier on today, it was revealed that a proposed £90m deal from private equity firm, M2 Capital, claiming to retain all employees' roles for two years, whilst it saved Wilko from collapse, had fallen through. The bidder was unable to file the relevant paperwork in time which meant the inability to provide proof of funding.Following this, redundancies will shortly commence, with:269 employees at the retailer's support centre (Worksop) to be made redundant from close of play 4th September 14 employees at Kin Limited to be made redundant from close of play 4th September - this is a subsidiary of Wilko For the two distribution stores in Worksop and Newport, redundancies expected to be announced from next weekJoint administrator Jane Steer said: “It’s with great sadness that we announce these redundancies. We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks. We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work. Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect. We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms. Advice and assistance will also be available from Job Centre Plus and other agencies.''With this in mind, talks are underway still with HMV owner, Doug Putman and PwC.28th August 2023The latest on Wilko x Administration threat is that Doug Poutman, HMV owner, is in discussion with PwC about offering a finance offer for hundreds of Wilko stores. He seeks a £50m backing to do so. If this falls unsuccessful, a deal with Poundland is likely to go ahead.24th August 2023We hear an update today from the administrators of Wilko. They share that jobs are set to go and stores will close as no buyer has been found for the business as a whole. This being said, some parts of the group could be bought.In a statement, PwC said: "While discussions continue with those interested in buying parts of the business, it's clear that the nature of this interest is not focused on the whole group. Sadly, it is therefore likely that there will be redundancies and store closures in the future and it has today been necessary to update employee representatives.''23rd August 2023Rumours share that Poundland owner,  Pepco Group is in talks with PwC to acquire around 100 Wilko stores. Alongside this, B&M European Value Retail are supposedly negotiating over 40-50 stores. There are then various other value retailers, like TOFS, of whom have lodged offers to acquire smaller parts of Wilko's 400 store strong chain.A more official announcement is expected tomorrow on at least some of the sale agreements.Even with such agreements, there still remains risk of some site closures and job losses.Let's see what is to come...18th August 2023The deadline for interested parties to put forward a rescue deal for Wilko has passed. Administrators weigh up rescue bids. In the meantime,  a secondary sale begins, with discounts on hundreds of products in store.It has been heard that B&M, Poundland, The Range and Home Bargains - all competitors of the homeware retailer, have had interest to submit an offer.Whilst PwC are working on this case, no redundancies have been made. Only time will continue to tell the chains future.14th August 2023Companies vying to buy Wilko have been given until Wednesday 16th August to make an offer for the homewares chain which fell into administration last week.10th August 2023High Street home wear retail chain, Wilko, has collapsed into administration appointing PricewaterhouseCoopers (PwC) as administrators. This leaves 12,000 jobs at risk, as well as the future of many of its 400 stores.With the appointment of PwC, it triggers administrators to run a further administration sale, to see if there are any last minute rescue offers. However, should this not be successful, the 93-year-old chain will close and have its assets sold - making Wilko the biggest casualty of the High Street this year.  If you are an employee, worried about what this means for you, read our guide.Further updates to follow.9th August 2023Wilko has suspended all home deliveries, suggesting a fall into administration is inevitable. Talks with buyers have been underway, but it is thought nothing much will come from them, with the latest updates.8th August 2023 The owner of the Laura Ashley brand, Gordon Brothers, is in talks about a potential rescue deal for Wilko. Insiders say the offer may involve Gordon Brothers providing funding to the retailer to implement a restructuring which would involve a key amount of stores closing and jobs lost.PricewaterhouseCoopers (PwC), which is advising Wilkos', is understood to be seeking binding offers within days, with the company close to running out of cash. Should PwC be appointed as administrator, a further sale process will proceed before embarking on a liquidation of the retailers assets, if no rescue deal comes through.3rd August 2023News today is that Wilko is teetering on the brink of administration, with 12,000 jobs at risk.Despite offers from potential buyers, the needed liquidity to cover the cash pressures being faced, has not been met.Mark Jackson, CEO of Wilko announced the decision to file a notice of intention to appoint administrators. In the meantime, discussions will continue with interested parties in the hope of a late-coming rescue. Watch this space!  A notice of intent gives the company 10 days for a rescue deal to be agreed.  If nothing is forthcoming then it is likely that the company will go into formal administration with the loss of thousands of jobs.27th July 2023It has been reported that Hilco have put in another £5m into Wilko to help with the current cash flow problems.19th June 2023It has reported in the news that landlords of Wilko face the chance of no rental payments for at least the next three years, as a CVA is likely to launch in the next month. The restructuring arrangement looks to cut rents at 240 of its 400 stores, with no stores facing closure.One source close to the process told The Times, that the retailer will soon run out of funds and could collapse into administration if a CVA is not agreed.12th June 2023Wilko has brought in CBRE property advisors to open negotiations with landlords on rent reductions.According to the latest news, Wilko is exploring a Company Voluntary Arrangement, in order to renegotiate rents and potentially close some stores, as part of its cost-cutting plans.PwC advisors are said to have been approached, to look into the various restructuring options possible.Chief executive Mark Jackson remarked: “We’re in the early stages of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future.”16th February 2023Wilko has announced plans to cut more than 400 jobs, including assistant store managers, retail supervisors, head office managers and call centre workers, in the troubled retailer’s latest effort to control costs.4th January 2023It has been reported that Hilco, the retail turnaround fund, has lent £40m to Wilko to secure its long term future.Wilko has said that it has received a £30m emergency loan to see it through the Christmas trading period. It has already sold its distribution centre for £48m and leased it back. Hopefully this will be enough.In a statement Jerome Saint-Marc, Wilko CEO comments:“Our relationship with our lending partners is solid. The recent sale and leaseback of our distribution centre to DHL earlier this week unlocked £48m which has enabled us to repay our revolving credit facility in full. We’re taking this opportunity, now that the deal is done, to review how we manage our ongoing financing to best trade through the current retail environment while continuing to invest in our future.”Suppliers to Wilko have had their credit insurance withdrawn according to reports. If true, this is a big blow as that now means that suppliers will be reluctant to grant Wilko any credit, so putting serious strain on the retailers finances.Both Retail Week and Retail Gazette have reported that the restructuring advisors Teneo have been instructed by Wilko, the homewares store, to look at how it can turnaround its fortunes. Last month it announced that it was extending its payment terms to 60 days and that anyone due to be paid in September would be paid in November.These are indications that the company is struggling. So what options does the chain have? It has already closed down 15 stores but if it needs to close down many more, that might be subject to long leases, then a company voluntary arrangement is a good way to do this. High rents may not be the issue here but increased competition and a drop in trade as the cost of living crisis bites.

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Wilko collapses into Administration

Le Pain Quotidien enters administration with 250 jobs lost

in A guide for redundant employees in administration or insolvency situations News Retail

Cafe chain, Le Pain Quotidien has fallen into administration, resulting in 250 jobs lost and nine of its ten stores shutting. For details of how an administration affects staff see this page on employees.Stores in Parsons Green, Monument, Royal Festival Hall (Southbank), South Kensington, Covent Garden, Mayfair, Hyde Park, Marylebone High Street and Oxford will be closing. The store to remain open will be that in St Pancras International station. This is the outlet owned by SPQ Holdings Limited, the sister company of Brunchco UK (the trading name of the chain in the UK).Kroll has been brought in to act as administrators.Prior to administration alternative options were explored, which involved a CVA and a sale of the business and its assets. Offers were recieved, but nothing possible to pursue.The Belgian chain has been struggling for some time, with first signs of trouble in the early months of the pandemic. Before the pandemic, 26 UK sites existed. The cost of living crisis and falling footfall in the city, where the majority of outlets are, has been blamed for its failure.Sarah Rayment, global co-head of restructuring at Kroll, said: 'Pressures on parts of the hospitality and casual dining sector have been well highlighted. Brunchco UK Limited which is predominantly located in London has suffered from reduced revenues as a result of decreased footfall in the capital, high rents and increased wage costs. As part of the next steps of the insolvency, we will be looking to realise value from the company's leasehold interests and other assets.'The international operations of the branch are not impacted.

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Le Pain Quotidien enters administration with 250 jobs lost

Administration for major UK wedding dress retailer, David’s Bridal

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

Just hours after its US owner filed for bankruptcy and David's Bridal UK has filed an intention to go into administration. Andy Pear and Milan Vuceljic of Moorfields Advisory have been put on standby to be  appointed as the administrators working on the case.Across the UK, David's Bridal has 100 employees across its four stores in Watford, London, Brimingham and Glasgow.The retailer, founded in America in 1950, has operated in the UK since 2013, specialising in wedding and occasion dresses and accessories - a name known for many to-be-brides!In a statement, David’s Bridal said: “David’s Bridal stores remain open, and the company intends to continue operating in the ordinary course, including by fulfilling all customer orders without disruption or delay.'' It said it “intends to continue exploring a sale of all or some of its assets”.This is not the first time the retailer has faced difficulty. In 2018 it had filed for bankruptcy. According to CEO of the American parent company, meaningful strides had been taken in recent years to meet customers needs and transform accordingly.“Our business continues to be challenged by the post-Covid environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward. We are determined to stay focused on our future, because we believe we have an important role in ensuring that every bride, no matter her budget, can have her perfect dress.”When analysing the recent history of the UK counterpart, it had warned of a “material uncertainty” about its ability to continue in its 2021 accounts, which were signed off by the board last December. This was because the US parent company had done a deal in November 2022 to create additional liquidity that was dependent on “continuing compliance” with the loan terms.The UK business’s most recent published accounts, for 2021, showed a £170,000 loss on revenues of £4.3m. It last recorded an annual profit in 2018.

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Administration for major UK wedding dress retailer, David’s Bridal

Energy Suppliers That Have Gone Bust

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

21st October 2025It has been reported that Tomato Energy, which supplies 12,000 homes, has filed an intention to appoint administrators 9 days ago.  The moratorium lasts 10 days so unless it gets extended then the company will go bust.1 April 2025Rebel Energy has ceased trading affecting 80,000 customers The collapse of Bulb energy has been in the headlines as it has emerged that the tax payer is going to have to bail out its customers at a cost of £6.5bn.  Chris O'Shea the CEO of Centrica has warned that other suppliers are technically insolvent and may fail this winter.21 February 2022Whoop Energy which was introduced as a “small, independent family-run company” supplied 262 customers – the majority of them were businesses.Xcel Power had 274 customer accounts, gas only and all non-domestic.10 January 2022Following on from the recent news of Together Energys' likely collapse, FRP Advisory are heard to have been lined up for the handling of the procedure. Administration is expected this week.05 January 2022Together Energy, of which has a 50% backing from Warrington Borough Council, is the latest energy supplier on brink of collapse.Without an emergency cash injection via a rescue deal, it will run out of funding this month.Close sources say that Alvarez & Marsal, was close to concluding its hunt for new funding for the business and that the prospect of a solvent deal was now remote.Sky News report more.01 December 2021Zog Energy is the latest energy firm to go into administration. The market regulator will appoint a new supplier for its 11,700 gas and electricity customers.25 November 2021Orbit Energy and Entice Energy are the latest energy suppliers who have collapsed following the surge in gas prices being seen at the moment.22 November 2021It has been confirmed that Bulb Energy is to enter "special administration" following the collapse of discussions with its secured creditor over a £50m loan. “We’ve decided to support Bulb being placed into special administration, which means it will continue to operate with no interruption of service or supply to members," said a Bulb spokesperson. "If you’re a Bulb member, please don’t worry as your energy supply is secure and all credit balances are protected.”Bulb is the first energy supplier to be placed into the Special Administrator Regime, where the government will take over and run its operations, through regulator Ofgem. Such a proces is only used when Ofgem struggle to find another supplier who can take over the collapsing suppliers customers.16 November 2021Neon Reef and Social Energy Supply have ceased trading, with 35,500 customers impacted.2 November 2021Another day and another four energy suppliers collapse; Omni Energy Limited, MA Energy Limited, Zebra Power Limited, and Ampoweruk Ltd become the latest to cease trading.Together, the companies supplied about 23,700 domestic and overseas customers.1 November 2021Bluegreen becomes the latest small energy provider to collapse, amid high gas prices putting a strain and leaving the company in an ''unsustainable situation''.The provider serves 5,900 customers, of which will be moved to another supplier - as stated by energy regulator, Ofgem.29 October 2021The Government has accelerated contingency plans for the collapse of Bulb, the seventh-biggest energy supplier in the UK. This could leave 1.7 million household customers at risk - it would be a big demise! Ministers and officials, as well as Ofgem, have warned the company could collapse as early as next week.Some interested parties are in talks, but others have pulled out in recent days. A solvent resuce is possible, but it is unlikely the supplier would then survive November, if they lack any new funding.Sky News reports more.18 October 2021British energy supplier GOTO Energy Ltd has ceased trading, regulator Ofgem said on Monday, becoming the 12th UK energy firm to go bust since the beginning of September as companies struggle with record wholesale energy prices.GOTO Energy supplied gas and electricity to around 22,000 domestic customers.13 October 2021According to BBC News, Pure Planet and Colorado Energy have added to the list of collapsed small energy firms.It is reported tonight that advisers of CNG Group are seeking offers for its commercial supply arm, which supplies more than 40,000 SME businesses. Bids are required by the end of the week.This comes as the energy supplier prepares to withdraw from the gas wholesale market, highlighting the worsening impact the energy sector crisis is having on those within.Sky News reported that sources said the group was working with legal and accounting advisers to prepare for an insolvency process, with an insolvency practitioner likely to be appointed next week.See more from Sky News here.12 October 2021It has been reported that energy regulator, Ofgem are expecting another wave of collapses from suppliers, amid the crisis the industry is facing.As shared by Sky News, it is understood that at least four suppliers were in talks with the regulator about entering its 'Supplier of Last Resort (SOLR)' system, which would result in adding to the amounts of households impacted by rapidly increasing wholsesale gas prices.11 October 2021As reported by Sky News,  Pure Planet, which is partially owned by BP, is in talks with government regulator Ofgem to initiate the Supplier of Last Resort (SLR) process and transfer its 250,000 clients to other providers.  Pure Planet was founded in 2017.29 September 2021Just a week later and three more energy suppliers have ceased trading; Igloo, Symbio Energy and ENSTROGA.Customers of the collapsed suppliers have been reassured that a new supplier will protect them, in due course.Sky News report on the issue.22 September 2021Not even 24 hours since the last news update and we have further to add!Now, Green, alongside Avro Energy, have ceased trading and fallen victim to the energy sector crisis. Together, these energy suppliers, serve over 800,000 customers.''Unprecedented market conditions and regulatory failings'' are to blame.More casulaties are expected.Whilst all this has been happening, is has been revealed that Igloo, a small player in the same sector, has called in advisers and stopped taking on new customers, hinting signs it could be next.  See below for some of the latest news.https://www.energy-review.co.uk/guides/which-energy-suppliers-are-going-bust/21 September 2021Green, a small UK energy supplier, lines up advisers, Alvarez & Marsal, to oversee a potential insolvency. Administration could happen within days. This is the latest, but by all means, not the last, energy firm to struggle. Right now, there is an energy crisis being faced. Ministers rule out any help and action to assist companies on the brink of collapse.The advisors are working with Green to arrange plans, using Ofgem’s (energy industry regulator) Supplier of Last Resort mechanism.Around 200 people are employed with the firm. Unless state support is received, the CEO, McGirr, warns that the company may fail within three months.State support is unlikely. There are talks of support in some ways for larger energy companies, including extensions to state-backed loans, to subsidise the cost of taking on lossmaking customers from insolvent rivals.Sky News reports more.

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Energy Suppliers That Have Gone Bust

What Happens To Your Pension If A Company Goes Administration?

in A guide for redundant employees in administration or insolvency situations

The news that your employer has gone into administration is incredibly stressful, and your first thought is likely, "What about my pension?" The safety of your pension depends on the type of scheme you are in: a money purchase scheme or a salary related scheme.We'll walk you through the key differences and what happens in each scenario.What Is a Money Purchase (Defined Contribution) Scheme? In a money purchase scheme, the money put aside for your pension is based on your and your employer's pre-agreed contributions. The final value of your pension depends on the performance of the investments it's held in, not on your salary.The scheme itself is not directly affected by your employer going into administration, as it is legally independent of the company's financial status. You will only lose out on any unpaid contributions that were not paid before the company went into administration. If you have these unpaid employer contributions, you can claim them from the National Insurance Fund.What Is a Salary Related (Defined Benefit) Scheme? A salary related scheme is a less common type of pension where the value is defined by your final salary, age at retirement, and length of service. If your employer goes into administration and the pension fund cannot meet its future liabilities, the Pension Protection Fund (PPF) is designed to step in and ensure your pension is still paid.The Pension Protection Fund (PPF) The PPF was established in 2005 to provide compensation to eligible members of salary related pension schemes in the event of an employer's insolvency.Once a company's liquidation has been announced, the following process begins:A four-week assessment begins to determine the pension scheme's eligibility for the PPF. If eligible, it can take up to two years to determine how much compensation will be paid to members. From the start of the assessment period, those who have already retired will receive their full pension. Employees not at retirement age will receive 90% of their benefits, up to a maximum compensation level set by the fund.It is important to note that once the assessment phase has begun, you must stay in your current pension scheme and not transfer any money to a new one.What If the Pension Provider Goes Bust? In the unlikely event that your pension provider (not your employer) goes bust, you can claim compensation from the Financial Services Compensation Scheme (FSCS).While the situation is stressful, pension schemes are well-protected by law and government funds. Understanding the type of pension scheme you have and knowing that a legal framework is in place can provide some peace of mind during this difficult time.

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What Happens To Your Pension If A Company Goes Administration?