A guide for redundant employees in administration or insolvency situations


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

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

BrightHouse to go into administration according to reports

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

Update 1st March 2020.  It has been reported that Brighthouse is likely to go into administration. BrightHouse, rent-to-own retailer, has announced that 30 stores will close, with 350 jobs to be cut.It isn’t a good time for the company.Recently, the Financial Conduct Authority found 400,000 people were paying a further £23 million per year on goods such as TVs and fridges, because of overpriced goods and interest charges which were excessive.  Additionally, a £22.1 million pre-tax loss found in their latest set of accounts – financial struggles leaving no choice but to cut costs by conjoining redundancies with store closures.Is there potential for a CVA underway? Is new finance needed?For some of the 350 jobs cut, new jobs will be given within the business – though redundancies are still inevitable.In April, the FCA will introduce a cap on interest rates, which BrightHouse will be able to charge their customers.The stores which will be closed, are as follows:Aylesbury Basingstoke Bognor Regis Bromley Cowley Dunstable Eccles Gravesend Haverfordwest High Wycombe Leeds Merrion Macclesfield Maidstone Newark Newport Nuneaton Perth Rugby Scarborough Seaham Selby Southport Stafford Stirling Thetford Trowbridge Watford Weymouth Whitehaven YeovilOr you can watch the video that explains your rights

Read
BrightHouse to go into administration according to reports

HonestJohn.co.uk has gone into administration

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

The consumer motoring website, Honest John, has gone into administration.  This is according to the documents filed at Companies House showing the appointment of business advisory firm, FRP Advisory as its administrator on January 7.HonestJohn.co.uk are an automotive support service, giving motoring advice and posting reviews of cars and vans. It also has a weekly column published on the Daily Telegraph website.A brief statement from the company, shared on its social media accounts, said how joint administrators, Miles Needham and Simon Carvill-Biggs are managing all its affairs, assets and business. They take the role of the ‘agents of the company without personal liability’.The company is currently still continuing to trade, as is its Twitter and Facebook accounts still in operation. Administration simply means the company is being protected from any legal actions from creditors and any applications for it to be wound up, whilst a buyer is sought.As of 2026 it is still trading it seems and offering good advice

Read
HonestJohn.co.uk has gone into administration

Bond Giant LC&F collapse, creating doubt for thousands of investors

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

This article originally was published in February 2019 Bond giant, London Capital & Finance collapsed into administration, leaving more than 15,000 investors at risk and high in doubt.More than £225 million was raised from investors, with attractive interest rates of 8%, encouraging many pensioners and small businesses to invest here. Some bondholders invested over £100,000.However, it became apparent that the company’s products, which appeared to be independently marketed on price comparison sites, were actually ran by the director of Surge, the bond giants outsourced marketing partner. Mini-bonds were sold, yet unregulated by the FSCS. Following this, the Financial Conduct Authority began an investigation, just before Christmas 2018, which restricted them to raise any more money or touch any assets. The company were deemed to be misleading in its activities.Smith & Williamson LLP were appointed joint administrators by the company directors, with this being filed by the High Court yesterday (30th January 2019). There was discrepancy over this appointing act; news spread that LC&F filed for administration first, rather than external creditors. This angered Jane Sanders of JSCS, unregistered barrister and claims handler, who demanded that bondholders should be able to choose their own administrator, at the first creditors meeting.‘’We need to hire somebody who specialises in getting money back for investors, and it should be bondholders choosing them, not the company itself’’.The amount bondholders will get back, if any, is a doubtful consideration.Finbarr O’Connell, administrator stated: ‘’It is early days, but our role will be to work with LCF’s borrowers, staff, the Security Trustee for the Bondholders, the FCA and other stakeholders to ascertain what needs to be done in order to maximise the returns to the bondholders. We are especially focusing on the various loans made by the company to borrowers. At this juncture, regrettably we are not in a position to return any monies to bondholders.’’All bondholders will be contacted, and a dedicated call centre and email system has been created. There is much work to be done, so administrators ask bondholders to ‘’bear with us in these early stages’’.

Read
Bond Giant LC&F collapse, creating doubt for thousands of investors

Dream Lodge Goes Into Administration

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

Dream Lodge, which operates holiday parks across East Anglia and other areas has gone into administration.  The operator parks were based in Lazy Otter Meadows in Ely, Blosson Hill Park in Devon, The Sanctuary in Berkshire and Woodlands Park in East Sussex.In a statement the partners at Deloitte, Richard Hawes and Rob Harding said that The Dream Lodge Group was impacted by a “period of financial pressure”.It added: “Given the immediate funding constraints and seasonality of the business, it has been necessary to make 80 out of the 121 employees redundant, with immediate effect.”The holiday parks were more luxurious than most and promised, Hot Spas, walk in wardrobes, heated swimming pools etc.  Investors were encouraged by being promised access to the lodges and a guaranteed rental return.  Things started to go awry when payments to investors didn't arrive.  Lodges were available for investments between £50k and £150k.Unfortunately, these investors are unlikely to recoup much money as they are in effect unsecured.  Lenders will have security and are more likely to get something back on the sale of the park's assets.

Read
Dream Lodge Goes Into Administration

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?

Update May 2026 The Richardson Hotel Group exited the administration in 2018 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.

Read
Torquay’s Famous Grosvenor Hotel Goes Into Administration

Betterware goes into administration soon after Kleeneze

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

Betterware, which sells household items via a catalogue sent to millions of homes, has gone into administration following its sister company Kleeneze.  Betterware employed directly 90 people and thousands of door-to-door selling roles. Betterware said that difficult trading conditions and cashflow problems had been responsible for its demise.The firm started in 1928 when it was founded in east London as a door-to-door seller of brushes and polishes. The catalogue was launched in the 1970s and in 2015 the business was bought by JRJR, a Texas-based consumer sales group. The company relies on thousands of self-employed agents who distribute the catalogue around the country. Many of them have other forms of income to supplement their earnings. Begbies Traynor, the company’s administrator, said that Betterware had ceased trading, with all staff made redundant. “Our aim was, of course, to find a purchaser for the business as a going concern in order to safeguard the jobs, but unfortunately this did not prove possible,” it said.Any parties interested in acquiring assets of the company has been asked to contact the joint administrators Gareth Rusling and Claire Dowson of Begbies Traynor as soon as possible. No details have been given to those who may have ordered goods but have a look at our page on “will I get my goods!”This is what one of the regional managers sent to us to put her side of the story

Read
Betterware goes into administration soon after Kleeneze