A guide for redundant employees in administration or insolvency situations

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.

Read
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.

Read
What Happens To Your Pension If A Company Goes Administration?

Arcadia brand Outfit is to have its stores closed down by the end of the month

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

19 January 2021Deloitte, administrators of Sir Philip Green's Arcadia empire announce its Outfit operation will close down by the end of the month, with more that 700 jobs lost.Outfit brings all of the tycoon's retail brands, including Topshop, under one roof.It has 21 sites, mainly in out-of-town shopping destinations.In regards to other brands, so far Evans is the only which has been sold - and this did not include its store network.Next and JD Sports are rumoured to be among the competing bidders for the brands, with Topshop the most valuable and others including Burton, Wallis and Dorothy Perkins.This being said, any deal is expected to result in the loss of some jobs as the new owners are unlikely to retain the group's entire estate of around 400 stores in the current market.21 December 2020It has been announced today that Evans' brand, commerce and wholesale business has been sold to City Chic Collective for £23 million.A deal is expected to be completed on December 23, which will lay out the terms of the sale of the brands' intellectual property, customer base and inventory, to City Chic. Evan's store network will not be purchased and administrators, Deloitte state stores will continue trading for now.Evans, plus-size clothing and footwear retailer is a part of Sir Philip Green's collapsed retail empire, Arcadia.City Chic Collective is listed on the Australian stock exchange and specialises in plus-size women's fashion. It operates mainly online in the US, Australia and New Zealand.Deloitte said that the process to find new owners for the other Arcadia brands i.e. Topshop, Topman and Dorothy Perkins, was ongoing and that there has been significant interest expressed for each.30 November 2020Arcadia Group collapses into administration. The collapse of Sir Philip Green's retail empire leaves 13,000 jobs hanging on a thread. It becomes just another corporate failure from COVID-19.The retail empire operates from 444 UK sites and 22 overseas. It also has an online arm.As of yet, no redundancies or store closures have been announced. The business will rather trade as normal, with stores ready to re-open ahead of the UK lockdown restrictions being lifted this week.Appointed administrators from Deloitte begin the search for a buyer for the business.27 November 2020It has been reported by Sky News that Arcadia Group is facing collapse within days.As soon as next week, administrators from Deloitte are thought likely to be appointed to Sir Phillip Green's retail empire.Arcadia Group owns Topshop, Burton and Dorothy Perkins. 15,000 jobs are at risk.A retail industry figure said that the collapse of Arcadia is inevitable following unsuccessful talks with lenders about an emergency £30m loan.If insolvency is confirmed it is thought this will be a catalyst for creditors scrambling to get their hands on the companies assets, even its online operations!Sky News report more.14 November 2020It has been reported that Arcadia Group is in a race to secure £30m.Talks with a number of parties are underway, in hopes to get the funds needed to prop up the business after the second English lockdown halted its pre-Christmas trading plans.Without this financial backing, will Sir Philip's empire survive the coronavirus pandemic?27 July 2020The latest on the situation of Arcadia Group is that they are said to be on the verge of launching another restructure, after being battered by the coronavirus lockdown. If another restructure is launched, it would be the second for the retail giant in just over a year.According to The Sunday Times, the company recently put forward a cost-cutting plan to the Pensions Regulator. Though exact details are unknown, it is reported that Arcadia has a deficit of £727 million in its pension funds.The Retail Gazette report more.09 April 2020An update on the situation of Arcadia Group is that they are seeking £50 million worth of funding, approaching banks and hedge funds.The funding is to be for its distribution centre in Daventry, Northamptonshire, to help support the business through the coronavirus crisis.A potential lender, approached about the plan has said that the company indicated its interest in getting a deal agreed as soon as it can. Currently there is no further update as to if a deal has been reached or not.­06 April 2020Arcadia Group is rumoured to be facing a winding-up petition as it cancels orders to suppliers in a bid to stay afloat amid the coronavirus outbreak.According to a spokesperson for the company, no decisions have been made yet. But, the terms of a rescue plan which was agreed with creditors in June 2019, provided possibility of more store closures than the initially planned 22.Last week it was reported that court records showed Principle Systems, a subsidiary of marketing company Principle Global, filed a winding-up-petition against Sir Phillip Greens’ retail empire. This is likely to be resolved but indicates a bigger matter than Arcadia are joining other retailers in delaying payments to suppliers in order to conserve cash.  It is also likely that the petition wouldn't be heard for a long time anyhow with many hearings being pushed into the Summer.Principle Systems developed furniture and branding for the latest Ivy Park and Kate Moss collections in Topshop.It is also heard that Arcadia are likely to serve notice on landlords to walk away from many of its 550 stores this week.With the coronavirus pandemic hitting, there has been a dramatic fall in revenues for the business amongst other fashion retailers. Many retailers are scared that the once stores can re-open, the economic impact left with greatly reduce demand.Following the governments lockdown measures, all stores have been forced to shut temporarily. Its e-commerce arm continues, despite a small proportion of sales coming to the group this way, compared to rivals such as Next.Arcadia Group took further measures and cancelled orders with suppliers and changed payment terms on items already delivered, extending payment terms by 30 days.Last week, Arcadia Group made 14,5000 of its 16,000 total workforce furloughed, under the government’s Coronavirus Job Retention Scheme. This was for all store staff with the majority of it’s HQ employees to follow this week. Its senior leadership team and board will take salary cuts of between 25 and 50 per cent, whilst group chief executive Ian Grabiner has elected to receive no salary or benefits until the pandemic ends. With regards to fixed-term employment contracts, employees were told they would end early.The pandemic has worsened Arcadia’s problems after several years of decline and a delayed entrance to the online retail market.Background to Arcadia’s CVA:Last year, after weeks of bargaining with landlords, the group moved to paying monthly rent rather than quarterly, with large rent reductions imposed at many trading locations.The Company Voluntary Arrangement (CVA) it was under also included break clauses that allowed either the company or its landlords to break leases at certain intervals.  The agreement covered for 20 Topshop and Topman stores where the company could trigger a break clause within six months of the CVA and a further 19 where leases could be broken after a year. The locations included Westfield Stratford and provincial towns such as Doncaster.

Read
Arcadia brand Outfit is to have its stores closed down by the end of the month

Select Fashion Goes Bust But Shops Sold

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

Fashion retailer, Select has finally disappeared from the High StreetBack in 2018 the CVA saved 2000 jobs and resulted in rent cuts of up to 75 per cent and another one was proposed in 2019 but overturned.  Since then the company has been slowly cutting stores back.​It is understood that insolvency firm Moorfields has been appointed liquidator following a creditors meeting last Friday.The group had already shut 35 shops in mid-March having quietly trimmed down its estate since the start of the year.The retailer is left with 48 shops and they have been sold to Essence Fashion Limited.​  These are expected to stay open but any people made redundant following the liquidation have been told to make a claim via the redundancy payments office.If you are an employee of the business then you can claim redundancy through the government.  Please see this page on help for employeesThe company has reassured that those remaining employees will get their pay from last month but there may be some delay.  This is according to reports that have seen a letter from the company.  Once the company is in liquidation then it is controlled by the liquidator.In essence this is what is called a pre pack liquidation and is quite rare.  They may have chosen to do this outside administration to keep costs down.The company reported a pre-tax loss of £1.1 million for the year to the end of February 2023, according to its most recently-filed accounts. 

Read
Select Fashion Goes Bust But Shops Sold

Harveys Furniture Goes Into Administration

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

Harveys Furniture has gone into administration as it fails to find a buyer.240 jobs have been immediately lost whilst 1,300 others are at risk.  Harveys’ sister chain, Bensons for Beds was also put into administration, though it was bought out in a pre-pack administration by its private equity owner, Alteri Investors..Administrators from PwC are looking for a buyer, which includes the purchase of its 20 stores and three manufacturing sites.For now, its stores continue to trade but those in the industry believe a buyer is unlikely to be found.Zelf Hussain, joint administrator at PwC said: ‘’the group had been facing increasingly challenging trading conditions in recent months, in particular Harveys furniture business. This has resulted in cashflow pressures, exacerbated by the effects of coronavirus on the supply chain and customer sales. It has not been possible to secure further investment to continue to trade the group in its current form.”

Read
Harveys Furniture Goes Into Administration

Oasis and Warehouse likely to go into administration

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

17/06/2020Almost two months after Hilco Capital secured a deal to buy the Oasis and Warehouse brands, saving it from administration, we hear that the Oasis and Warehouse online businesses and their associated intellectual property would be bought by Boohoo.Boohoo has a market value of almost £4.7bn. Its portfolio of brands now moves to 9. Just last month it struck a deal to buy the minority interests in women's fashion retailer, PrettyLitttleThing.30/04/2020Today we hear that Hilco Capital, the former owner of HMV, has agreed a deal with administrators regarding high street fashion chains, Oasis and Warehouse.Hilco has agreed to buy both brands, along with Idle Man and the stock from their many outlets across the UK. So, the intellectual property assets and some stock has been sold.However, Oasis and Warehouse Group's stores are not included in the deal, meaning immediate redundancy is the case for over 1,800 staff. The staff have been told no statutory redundancy pay will be received.Since, April 22 the retailers stopped trading online because of the “rising costs of fulfilling online orders and associated logistical challenges, after appointing Deloitte as administrator the previous week.''Joint administrator of Deloitte, Rob Harding explained the sadness of having to said:  “It is with great sadness that we have to announce a sale of the business has not been possible and that we are announcing so many redundancies today. This is a very difficult time for the Group’s employees and other key stakeholders and we will do everything we can to support them through this.”15/04/2020Addressing the rumours from yesterday, it is now confirmed that high street fashion chains, Oasis and Warehouse have fallen into administration. Deloitte are the appointed administrator.92 stores and 437 concessions are affected, all these being in UK. 200 jobs have been lost with immediate effect. Around 1,800 staff, including those on the shop floor, in concessions and those at head office, will be furloughed.The brands will continue to be sold online, whilst the administrators work on finding a buyer.Chief Executive of Oasis and Warehouse, Hash Ladha explained the situation as unpredictable, shocking and difficult for all.Joint Administrator at Deloitte, Rob Harding said how the retail industry as a whole was suffering devastating effects from coronavirus."Despite management's best efforts over recent weeks, and significant interest from potential buyers, it has not been possible to save the business in its current form."It is thought that there will be interest from bidders in buying the businesses but of course with the current economic situation, it is all very uncertain.14/04/2020Oasis and Warehouse look likely to be the next casualties of the coronavirus crisis.  Sky News has reported that they are about to file an intention to appoint administrators at Deloitte, with an announcement expected later on Tuesday or Wednesday.Three weeks ago The Oasis and Warehouse Group, which is owned by the failed Icelandic lender Kaupthing, was approached for a possible sale from an unnamed buyer.  Kaupthing has managed to offload some of its brands already such as Karen Millen and Coast to Boohoo.Although there is understood to have been strong interest in a deal, the uncertainty caused by the coronavirus pandemic is thought to have made a solvent sale impossible to conclude.Both retailers support approximately 2300 jobs.The difficulty facing many retailers is stark. The High Street has already been under pressure and the creditworthiness of these companies has made them unlikely to be able to draw on the government help with respect to loans.  Yes, they can benefit from the furlough arrangement and the business rates but with high rents and creaking balance sheets it is likely that many won't be able to make it through this crisis.

Read
Oasis and Warehouse likely to go into administration

Leon serves up a CVA

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

1 December 2020It has been reported that healthy restaurant chain, Leon, has served its creditors details of a restructuring plan. Included in the plan is:A multimillion pound investment from shareholders to secure its future 4 restaurants switching to a rent-free model The majority of restaurants switching to turnover-based rentsThe plan is proposed to last just 2 years, in oppose to the typical 3 year period.23 November 2020Restaurant chain Leon becomes the latest to explore an insolvency mechanism in order to try and secure its future, amid challenges brought on from the coronavirus pandemic, according to Sky News.Leon is heard to be drawing up proposals with advisers, for a company voluntary arrangement. This would involve seeking rent cuts from landlords and could involve some site closures for those not performing. Jobs are also at risk – though the implications for jobs and any set figures are unknown as it stands.It was just earlier in May that Quantuma were reported to be drafted in to help the chain secure rent cuts from landlords.The company, which has gone on to become a key player in the healthy fast-food sector, was set up in 2004 by Mr Dimbleby, John Vincent and chef, Allegra McEvedy. The menu is inspired from the founders; Mediterranean roots- mixing its flavours, variety and natural healthiness.It operates from more than 75 sites across the UK, mainly in busy city centres and transport hubs, as well as in Washington DC, Oslo, Amsterdam, Dublin, Rotterdam and Gran Canaria.It has faced difficulty, as have many other players in the fast-food market, particularly due to the slump in commuter numbers, which were a key target consumer group.

Read
Leon serves up a CVA

Coast Collapse into Administration

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

Coast becomes the latest fashion chain to collapse into administration.Last month, Aurora, Coasts parent company, was searching for a buyer, after the business was hit hard from House of Fraser’s recent difficulties.On Thursday evening, staff were told that all of Coast’s 24 standalone stores will close, with 300 jobs at risk.PwC have been appointed as administrators.Upmarket womenswear rival, Karen Millen have brought Coast’s brand, website and concessions, as well as taking on 600 staff. They’re said to be working with the existing management team to continue to grow and develop the new business.  Though this sale gives a firmer financial footing for Coast, not everything was included in the transaction, leaving 24 retail stores behind.PwC director and joint administrator, Mike Denny, states ‘’The businesses had been facing financial difficulties due to structural changes in the retail space and specifically the concession partner market, as well as a softening of demand for occasion wear.’’Coast operate a number of concessions in House of Fraser stores and so faced a multi-million-pound bill following the department stores £90m pre-pack administration sale. They were not the only fashion brand to have taken a hit, with Ted Baker, Mulberry and Quiz also being affected.

Read
Coast Collapse into Administration