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Dot Dot Loans Goes Into Administration

Dot Dot Loans owner the Morses Club and Shelby Finance has gone into administration with the loss of 101 jobs. 272 staff remain across the two firms whilst the administrators look for a rescue or sale.Ed Boyle and Rob Spence from Interpath Advisory have been appointed as joint administrators.The companies have been under financial stress since the Morses Club is now facing lots of customer redress claims for offering them unaffordable loans.In May 2023, the Morses Club entered into a Scheme of Arrangement which is a system of restructuring used for complex financial companies and trusts and is administered by lawyers.The administrators said; “However, despite management’s best efforts, Morses Club has been unable to complete the refinancing of its existing debt facilities and therefore, the directors took the decision to appoint administrators to the businesses.As a result of the insolvency of Morses Club, the scheme automatically terminates early – further information regarding the impact on customers who submitted a claim in the scheme is available on its website”Shortly prior to the appointment of the joint administrators, all new lending ceased, but the companies continue to collect outstanding loans from customers.Administrators said it was "important that customers continue to make payments on outstanding loans as they fall due, as not doing so is likely to impact their credit rating/profile and their ability to borrow".The joint administrators will be working with the employees affected by redundancy over the coming days to provide them with support.

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Dot Dot Loans Goes Into Administration

The Squibb Group Proposes A CVA As It Struggles With Large Debts

8th November 2023Today it has been reported that the virtual meeting for creditors to vote on the potential of a CVA for Squibb Group has been delayed. It was scheduled to take place tomorrow, but now will occur on 21 November 2023. 1st November 2023The construction publication, The Enquirer, has seen a copy of the proposed Company Voluntary Arrangement (CVA) that Squibb has put to its creditors as it seeks to restructure its debts.The proposals by Begbies Traynor show that the company owes £23.3m to over 300 creditors.Unsecured creditors in the supply chain are owed £13.8m.The CVA proposes a dividend to its unsecured creditor of 65p in the pound.The five-year CVA deal would see Squibb make monthly payments of between £100,000 to £160,000 as it continued trading.The company had a time to pay arrangement with  HMRC last year for extra time to pay tax arrears of £4.4m. However a further request or an extension was rejected and HMRC have issued a winding up petition that is due to be heard in December.  It should be noted that HMRC are now secondary preferential creditors and are entitled to 100p in the £1.  CVAs will try and pay HMRC a higher rate in the £1 to secure their support.Squibb has raised extra funds by selling and leasing back its headquarters raising £8m. In addition the Squibb family has loaned the business £4.2m.The CVA document states: “The Company is now in a position to move forward but requires creditor support with existing debts and does not want to proceed into liquidation or administration which would serve to terminate all contracts and result in a worse outcome for creditors as a whole.“The Company is already the subject of an HMRC winding up petition. As a result, it is likely that the Company will be wound up by the Court if the CVA is not approved. This Proposal for a CVA is being presented to creditors as an alternative to the Company being put into liquidation.”75% or more by value of creditors need to agree for the CVA to pass.  KSA Group says that a CVA gives a company a fighting chance of survival and invariably gives a better return to creditors than that of liquidation.  However, they can be difficult to construct and the fundamentals of the business may need to change to ensure its success.  The secured creditors sit outside the CVA so it is important that the company can still pay these creditors in full going forward.

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The Squibb Group Proposes A CVA As It Struggles With Large Debts

Safestyle UK Goes Into Administration

LATEST:Following this mornings announcement, it has been shared that the business has gone into administration. Rick Harrison and Will Wright from Interpath Advisory were appointed joint administrators to H.P.A.S Limited, trading as Safestyle UK, Style Group Holdings Ltd and Style Group UK Ltd on 30 October 2023.Redundancies have been made for 680 of its 750 strong workforce. If you are an employee and have been made redundant or are concerned about what this means for you, please check out our guide.For customers, if you have outstanding orders then they are not going to be fulfilled - unless a buyer is found and the orders are included in the deal.A Bradford based double glazing windows firm has announced its intention to appoint administrators. Safestyle UK announced that it would appoint administrators after weeks of uncertainty at the company. They acknowledged that they haven't been successful in finding a buyer for the company or fresh financiers to provide funding.The company's share price has been falling due to unfavourable trading updates during the autumn, and at the beginning of the month, they announced that they were seeking new investors to provide more funding for the company.They published the following statement on Friday night:Safestyle UK plc (AIM: SFE.) announces that following its announcement of 26 October 2023 (the “26 October Announcement”), the interested parties that were, at that time, involved in the Proposed Sale process as defined in that announcement, have withdrawn their respective interests.Therefore, the Board of the main trading subsidiary of the Group, H.P.A.S. Limited (“HPAS”) and other intermediate holding companies in the Group, namely Style Group Holdings Limited and Style Group UK Limited, has concluded that they are no longer able to continue trading as a going concern.Consequently, the Board has filed notice of intention to appoint administrators to HPAS, Style Group Holdings Limited and Style Group UK Limited in Court today.Unless financial circumstances change, and in accordance with statutory requirements, the board of these three companies intends to appoint administrators within 10 business days.Further announcements will be made as and when appropriate.You can read the original statement here:Additionally, a text message reportedly from the CEO confirms to employees that the business will be put into administration and that there will be a Teams call on Monday at 2:00 PM, at which additional details will probably be disclosed. The way that the intention to appoint administrators was communicated to the personnel has already drawn criticism.A analysis on how the biggest window and door installer dropped from a £250 million valuation to nothing in just six years will one day be conducted. However, employees' top concern right now is whether they will get paid for the work they have completed. Homeowners will be worried about paid deposits, unfinished repairs, and work that needs to be done. Suppliers will be concerned about what will happen to their current inventory and if they will be reimbursed.

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Safestyle UK Goes Into Administration

Miskin Manor Hotel Goes Into Administration

The renowned wedding venue in Rhondda Cynon Taf - The Miskin Manor Hotel has gone into administration leaving couples searching for last-minute venues.On Friday, October 20, The Miskin Manor Hotel in Pontyclun announced its closing due to "cashflow pressures."A message posted on the hotel's social media apologised for forcing guests to cancel a number of activities at such short notice.The hotel apologised for the inconvenience caused by "unavoidable" cancellations and stated that they will contact all clients who had made reservations.One wedding scheduled for Saturday was reportedly cancelled on Thursday evening, leaving the couple with only one day to find a replacement venue.  KSA says; This of course sounds harsh but unfortunately the directors have a legal duty to ensure that the position of creditors does not get any worse.  So going ahead with a wedding would be a breach of the law. In addition acting quickly always gives a business the best chance of survival, especially if creditors are threatening legal action.  Gareth Harris and Diana Frangou of RSM UK Restructuring Advisory LLP were appointed Joint Administrators of RCA Hotels Limited, operating as Miskin Manor Hotel.Diana Frangou, RSM UK restructuring partner and Joint Administrator, stated, "Due to cashflow pressures, the directors made the difficult decision to place the company into administration."She also stated that some issues at the hotel resulted in "unavoidable cancellations" of some significant events at the venue in the near future. Ms Frangou apologised for the inconvenience and stated that they are working to rectify the situation as quickly as possible so that they may resume trading.A number of local venues have offered their assistance to anyone who has been affected by the cancellations.  KSA Says; If you have made a booking with the hotel or given a deposit using a credit card you will be able to claim it back.In comparison to paying with cash or a cheque, you have more protection if something goes wrong when you use your credit or debit card to make a purchase.If something goes wrong, your credit card company is jointly accountable under Section 75 of the Consumer Credit Act. This indicates that it shares responsibility for the goods or services you've purchased equally with the business or trader.Therefore, you can benefit from Section 75's complete protection if the retailer goes out of business and the items or services you bought for cost you between £100 and £30,000 by filing a claim with your credit card provider.

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Miskin Manor Hotel Goes Into Administration

The Luton Factory of SKF has ceased operations, 300 jobs lost

SKF has been manufacturing bearings, seals, services and lubrication management for industries worldwide. Its Luton factory, based in Sundown Park, that has existed for approximately 110 years, is to cease operations by the end of next year.This comes following talks with union representatives and its circa 300 employees. If you are an employee of SKF and have been made redundant, or are worried about your future, please check out our guidance here.There was talks back in May 2023 of site closure, but now it seems the talks have been confirmed and put into practise as there was ‘no viable alternative’.According to reports, the closure of this factory will occur in stages. Production for the company is expected to be moved to SKF’s factory in Poznan, Poland – as was the proposed way forward when talking of the event back in May 2023.SKF’s (UK) Managing Director, Michael Crean, comments ‘’ This is a very sad day for everyone and I would like to thank our Luton factory colleagues for their dedication and hard work and recognise the many generations before them who contributed to the success of the factory. Our attention remains fully focused on supporting our employees and providing assistance across all aspects as individually needed.’’Not only does this news come as another blow for the manufacturing sector in general, but also for the manufacturing sector locally for Luton.Sarah Owen, MP for Luton North commented on the matter: ‘’Manufacturing does not just represent jobs in Luton but it is a proud part of our history and what should have been our future…proper economic oversight could have seen more growth and more jobs.’’

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The Luton Factory of SKF has ceased operations, 300 jobs lost

Pre-pack administration for Victoria Plum

Intro Victoria Plum, one of the UK's largest online bathroom retailers, has been snapped up in a pre-pack administration deal (undisclosed amount) by AHK Designs. This came following being put up for sale by owner, Endless.Endless, the private equity firm, acquired the online retailer in 2019 and saw three years of profitable growth. However, most recently cashflow and profitability had been impacted from rising freight costs and a slowdown in consumer spending with many shoppers cutting back from online shopping. With this in mind, it was thought Victoria Plum would benefit from being part of a larger group, which owned complementary businesses in order to continue to develop.So now AHK Designs, the e-commerce retailer that also owns Beds.co.uk and furniture seller, Cox & Cox will take on the brand. It's 300+ sized workforce will be transferred over.Ernst & Young are handling the deal and confirmed the sale that took place on Friday afternoon; ''The joint administrators [Samuel James Woodward and Timothy Graham Vance] completed a sale of the business and certain assets of the company to AHK Designs LTD.''Aamir Khurshid, from AHK Designs, said: "Victoria Plum is a leading online retailer of bathroom products with a strong brand and market-leading product. We are pleased to be investing in the future of the business and look forward to welcoming all of Victoria Plum's employees into AHK Designs."

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Pre-pack administration for Victoria Plum

Wilko collapses into Administration

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

Monthly Insolvency Statistics: August 2023

in News Research and Statistics

The Insolvency Service has published the latest release of its monthly series to provide more up to date information on the number of companies and individuals who are unable to pay debts and enter formal insolvency procedures. The release supplements the Insolvency Service’s quarterly company and individual Insolvency National Statistics.The monthly series began when COVID-19 occurred, to assess the impact companies and individuals faced. The releases have continued since to get more in depth and timely data, along with the quarterly release. Company Insolvencies (UK) In August 2023 there was a total of 2,308 registered company insolvencies across England and Wales, further broken down as follows:1,880 creditors voluntary liquidations (CVLs) – 13% higher than that in August 2022 221 compulsory liquidations – 45% higher than in August 2022 195 administrations – 68% higher than in August 2022 11 company voluntary arrangements (CVAs) – 15% lower than in August 2022 1 receivership appointmentOverall figures are 19% higher than in August 2022. Also, compared to July numbers, this is quite a leap. There were approximately 600 more registered company insolvencies in August.Compulsory Liquidations and CVAs had seen a decrease compared to July 2023 figures, whereas all other types of insolvency procedure saw an increase. This included receivership appointments which had its first recorded in many months!Note: between 26 June 2020 and 31 August 2023, 46 companies were granted a moratorium and 22 had restructuring plans registered at Companies House. These procedures were created by the Corporate Insolvency and Governance Act 2020. Company Insolvencies (Scotland) August 2023 saw 112 company insolvencies in Scotland. Figures comprised 71 CVLs, 33 compulsory liquidations and 8 administrations. There were no CVAs or receiverships. These statistics were 6% higher than in August 2022. Compared to July 2023, these numbers are shown to have increased.Historically, the number of company insolvencies registered in Scotland has been driven by compulsory liquidations but since April 2020, there have been almost three times as many CVLS as compulsory liquidations. For the first half of 2023, CVL numbers remained more than 1.5 times higher than compulsory liquidation numbers.Between 26 June 2020 and 31 August 2023, there were no moratoriums obtained in Scotland and two companies had a restructuring plan registered at Companies House. The Corporate Insolvency and Governance Act 2020 created these two procedures. Company Insolvencies (Northern Ireland) In August 2023, there were 12 company insolvencies in Northern Ireland, comprising 2 compulsory liquidations, 4 CVAs and 6 CVLs. There were no receiverships or administrations. Compared to August 2022, such numbers are 14% lower and when looking to July 2023, overall numbers are almost exact. Touching on individual insolvencies…. For UK figures, there were a total of 2,714 Debt Relief Orders (DROs) recorded in August 2023. When looking back to August figures of 2022, 2023 stats are 40% higher.There were 648 bankruptcies for England and Wales in August 2023 - slightly more than what was seen last month. The records are made up of 522 debtor applications and 126 creditor petitions.Compared to August 2022, bankruptcies were 12% higher, debtor applications were 6% higher and creditor petitions were 43% higher. Numbers for bankruptcy were slightly higher in the first eight months of 2023 compared to that in 2022, but were still less than half the amount pre-2020.It was also found that there were 5,174 individual voluntary arrangements (IVAs) registered, on average, during the three months ending August 2023. This figure is 27% lower than the three-month period ending August 2022. Compared to 2022 where an annual record high was seen, IVA numbers have been lower throughout 2023.When looking at the figures for Northern Ireland, August 2023 saw 139 individual insolvencies. Compared to August 2022 statistics, this is 11% higher. 2023 August numbers consisted of 108 IVAs, 14 DROs and 17 bankruptcies.Find the full publication of statistics here.

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Monthly Insolvency Statistics: August 2023

Broadway Partners calls in administrators

13 September 2023It has been heard that Broadway Partners may be acquired soon, by a consortium comprising Tiger Infrastructure Partners and Macquarie. If completed, it would be the first co-investment in a British altnet provider undertaken by Macquarie and Tiger.Macquarie, which has ploughed billions of pounds into UK airports, energy transmission and other infrastructure assets, already owns a stake in Voneus, a specialist in fixed wireless access technology.Tiger is a backer of Rural Broadband Solutions Holdings, which operates under the brand SWS Broadband.The acquisition is likely to come in form of a takeover by Voneus. It is expected that the 40 remaining jobs at Broadway will be saved.8 June 2023Broadway Partners has fallen into administration.A statement from Teneo said the joint administrators will continue to trade the business and keep customers online while a buyer is sought. The statement also detailed that there is necessary funding in place to guarantee service to the existing customer base, connect new customers to the existing network coverage and quality assurance. Employees of the firm have been informed and a redundancy programme has began.31 May 2023Fibre broadband infrastructure provider, Broadway Partners, has called in administrators following a hit to its financial state from soaring costs and rising interest rates. This paints a gloomy picture and thus a catalyst for the industry, with many other fibre infrastructure players expected to file for insolvency in the coming months.The rural network builder in question, which launched in 2016, had a target of connecting 250,000 homes and businesses by 2025, this now seeming doubtful.Benji Dymant and Daniel Smith of Teneo Financial Advisory are the appointed administrators for Broadway. Though adequate funding is believed to remain through the administration process and finding a potential buyer, this initial collapse leaves more than 130 jobs at risk.Two years prior to this event, a funding package was granted for Broadway from Downing LLP which involved £145m in committment to the altnet. The mission of Broadway was to "deliver affordable, high-speed broadband services to the more remote regions of the UK, particularly Wales and Scotland where there is a notable digital divide in countryside locations".The fibre network builder market is dominated by BT's Openreach divison but other players include CityFibre Holdings, Trooli and Virgin Media 02. Pressure for consolidation has grown as costs have risen and supply chain and labour issues have interrupted previously viable paths to profitability.

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Broadway Partners calls in administrators

Patisserie Valerie in talks with lenders to stop it going bust.

in News Retail

13th September 2023The Serious Fraud Office (SFO) has today brought fraud charges against four individuals, including a former director, who oversaw the financial failure of a chain of almost 200 high street bakeries.The SFO has charged former director and Chief Financial Officer of Patisserie Holdings Plc for 12 years, Christopher Marsh, and his wife, accountant Louise Marsh, as well as Financial Controller Pritesh Mistry and financial consultant Nileshkumar Lad. All four suspects were served with charges at their homes.The SFO has charged all four suspects with conspiring to inflate the cash in Patisserie Holdings’ balance sheets and annual reports from 2015 to 2018, including by providing false documentation to the company’s auditors. During this time, the company also reported holding £28 million in accounts, yet concealed £10 million in debts from its investors and creditors.Update (14.02.19)Patisserie Valerie has been rescued by Causeway Capital Partners as it is bought out of administration.  It is expected that 96 out of the 121 outlets will stay open and most of the 2000 jobs will be saved.Update (22.01.19)After talks with the banks failed, Patisserie Valerie have fallen into administration. 70 outlets are to be closed immediately, whilst the remaining 121 continue trading, with hope of a buyer being found. A third of the 3,000 are understood to be made redundant. For any employees seeking advice regarding redundancy, see our page here.Update (21.01.19)Patisserie Valerie is under more pressure as it now appears that the "black hole" in its accounts is bigger than the initial £40m that was uncovered.  The company confirmed that it was in talks with its lenders to see if there was a way forward.  There is therefore a chance that lenders will not support it and the company will have to either go into administration or a Company Voluntary Arrangement if it is viable enough.  Either way it is likely that Luke Johnson will have to put in more than the £20m he already has in order to save the chain.Update (15.10.18)The latest news, for Patisserie Valerie, is that rumours suggest they are considering suing Grant Thornton, for failing to spot the £40m hole in their accounts.Luke Johnson, revealed that the board found a £9.7m 'secret overdraft', with Barclays and HSBC - that he, nor the auditors knew about.Johnson says the past week has been ''the most harrowing''. He felt morally obliged to rescue the business, as shown by his £20m cash injection.''2800 jobs were at stake, there was 12 years of effort that I and colleagues had put into the business, and the board were determined not to allow the business to go into administration''.Update (13.10.18)Only earlier this week, Patisserie Valerie was brought to our attention, being at risk of collapse. Now, news suggests they have been saved.Luke Johnson, who owns 37% of the company, has provided £20m of loans to the struggling chain.The deal agreed lending of £10m for three years, to owners Patisserie Holdings plc. It is said that this will provide ''immediate liquidity''.Additional to this, a further bridging loan facility of up to £10m was provided.New shares have also been issued, allowed a further £15m to be raised for the firm,The firm said it had also raised another £15m by issuing new shares.Company directors said they required a cash injection, immediately, of minimum £20m, for the firm to continue trading in its present form.Following the ''significant, and potentially fraudulent, accounting irregularities'', reported,  finance director Chris Marsh had been arrested and released on bail. The Serious Fraud Office said it had "opened a criminal investigation into an individual'', with no further comment or information being given.

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Patisserie Valerie in talks with lenders to stop it going bust.

Government shake up could bring a new watchdog to sit within the Insolvency Service

in News

Sources share that the Insolvency Service, which is part of the Department for Business and Trade, will unveil plans that would mean firms, as well as individuals, could face sanctions for misconduct. As a result of this, the current quartet of regulatory bodies, which includes the Insolvency Practitioners Association and the Institute of Chartered Accountants in England and Wales, would be ditched.This comes two years after a consultation launched, discussing the creation of a new independent regulator. The catalyst to this was the large collapses of BHS and Carillion, which drew attention to the behaviours of company directors and auditors. What would the reform aim to do? Ultimately its purpose would be to close a regulatory gap and bring insolvency firms closer in line with the rules which govern providers of audit and legal services.Further updates are expected next week.

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Government shake up could bring a new watchdog to sit within the Insolvency Service

Building Contractor Buckingham In Administration

The Anfield stand builder, Buckingham, collapsed into administration on Monday, losing around 450 jobs from sections administrators couldn't sell.Grant Thornton was named administrator today and cut 446 jobs from its building, civils, big projects, sport and leisure and demolition businesses.Kier saved 180 jobs by buying the firm's £150m-plus rail business, which comprises Network Rail and HS2, for £9.6m.Grant Thornton said 45 workers from Buckingham's corporate office near Silverstone would stay on for “a short period” to assist Kier buy the rail firm.Joint administrator Rob Parker said: “It is with regret that despite the best efforts of the directors and the Company's advisers, a sale of the Company's remaining divisions (Building, Civil Engineering, Demolition, Major Projects and Sport & Leisure) was not possible. 446 people from these divisions and some other significant responsibilities at the Company were laid off when the Company went into administration.”The 1987-founded Buckingham collapsed, leaving several high-profile jobs in limbo, including its plans to build new stands at Liverpool's Anfield and Fulham's Craven Cottage.After being postponed until October, the Anfield job was intended to be finished in time for the new Premier League season last month.Fulham was supposed to finish fit-out work on bars and restaurants in the stand by the start of the 2021/22 season, but last month the Cottagers confessed it will take until next year.Buckingham chairman Mike Kempley said “many other businesses are now engaging with the remaining 500 or so Buckingham employees” to locate jobs.He said, "After 36 years of uninterrupted trading, this is an extremely sad day for all the extremely committed and talented people who have made Buckingham Group Contracting what it is." We thank the client and supply chain firms that have supported the Company for years.The contracting implosion is the largest since Carillion's collapse in 2018.Buckingham was approaching insolvency last month when it announced it would hire an administrator due to “deep losses and interim cash deficits on the three major stadium and arena contracts, and a substantial earthworks contract in Coventry”.The contractor is still building a multi-storey car park beside Swansea Arena, but the stadium jobs are likely to be the new Liverpool and Fulham stands. The arena was completed by Buckingham for the city council last year, but the car park is months behind schedule because the paint that coats the steel framework needs to be removed and redone.Buckingham said on 17 August that it wanted to “explore a sale of all or part of the business in a very short period”—days or weeks—“to preserve as much of the business as possible” when it highlighted its note to appoint an administrator.Grant Thornton claimed it had been seeking to refinance for months, but “The legacy issues faced by the Company and ongoing losses were simply too great to enable the refinance to succeed in an acceptable timescale.”In the year to December 2021, Buckingham's turnover rose 14% to £665m, but the firm suffered a £10.7m pre-tax loss due to a bust subcontractor and a client that kept changing its mind on a stadium contract, believed to be its Fulham Craven Cottage scheme. This was only its second annual pre-tax loss since its founding. The company predicted £700m in revenue this year.

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Building Contractor Buckingham In Administration

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