What Does Going Into Administration Mean?


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?

17/06/2020 Almost 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. 30/04/2020 Today 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.” 15/04/2020 Addressing 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. 14/04/2020 Oasis 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.

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Oasis and Warehouse likely to go into administration

Advice if you supply a business that has gone into administration

in What Does Going Into Administration Mean?

We are a supplier to a company that has gone into administration, What should we do? How can you avoid getting stuck? Firstly, you need to get to know your industry. There are often tell tale signs that a business is in difficulty apart from just starting to pay late. Please see our list of warning signs of a business that is in distress. Of course, these are from the company in difficulty point of view but it should give you useful pointers. So be ahead of the news. Make sure that you know all the excuses about slow or non payment - the aim is to get paid and keep your own cash flow going. But what if the debtor has gone into administration. You need to know the law and your rights as a supplier. You have a contract with ABC LTD and on 21st December 2019, ABC LTD goes into administration, You are owed all monies up until 21st May. However of course you may not receive much of it. You must be able to provide proof of debt so make sure you have invoices to hand. The administrator should contact all creditors to inform them of the administration and inform them of a creditors meeting. Make sure you attend the meeting if you can, or get someone to attend for you. Do not supply or give credit to ABC LTD, if you continue to supply credit to this company there is a good chance you wont get paid because that company on paper does not trade anymore. Speak to the management (if a new management company has been set up), the administrators, your contacts. You need to be sure you are happy to continue to trade with the new business (out of administration) . You will need to agree new terms ie, reduced credit, a DD mandate, payment up front, (pro forma) whatever you are comfortable with and you will need to get the name of the new company. In a pre-pack sale where the business is put into administration and immediately sold, it may of course be trading under a different but similar name the very next day such as ABC Ltd. This is what is called a trading administration prior to a sale. If you are asked to supply the administrator (who is running the business) ask for payment up front or a guarantee from the ADMINISTRATOR that your business will be paid. Set up a new agreement but be careful who signs it, it can be signed by the following people a) ABC (IN ADMINISTRATION) LTD, co-signed by the administrators b) The administrators themselves c) The new management company, appointed by the administrators. The debt owed to you by ABC (IN ADMINISTRATION) LTD and ABC LTD are two separate things. The main purpose of administration is to rescue the company so it is often important that all suppliers continue to supply for the good of everyone. What if the business is sold via a pre-pack to a newco and that company with the same management asks your company to supply it? If the business is sold then this could be an opportunity to supply a new and perhaps more lucrative customer! but again make sure that you get the best terms possible. Pro forma is usually the best way to supply until there is a track record of being paid. Then provide say 7 days credit over time. Once again make sure a tight rein is kept on the credit. If the administration of a large customer puts you under pressure then there is no harm in giving us a call and we will give you free no obligation advice over the phone.

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Advice if you supply a business that has gone into administration

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.

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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 bar Why has it gone into administration? The Richardson Hotel Group went into administration in early January 2018. The five other hotels in the group fell into administration at a similar time. The Grosvenor Hotel is the sixth and final hotel in the group to fall into administration. The administrators for all six hotels are Mark Boughey and Matthew Wild of RSM Restructuring Advisory. All the hotels in the group are still trading. Administrators are discussing sales strategies with Colliers International and may end up selling one or more of the other hotels to finance the continuation of the Grosvenor. Too much money went into the refurbishment, rebrand and relaunch of the hotel. This is why the Grosvenor Hotel and the rest of its group fell into administration. HMRC petitioned the Grosvenor Hotel to wind up the business. But the move to administration has halted these proceedings. However, it’s “business as usual” according to Burton-Race. “This is just a glitch, which will be sorted, I’m not worried. The company has plenty of assets and once one of them is sold, things will go back to normal.” Hopefully, the move into administration will help the Grosvenor Hotel restructure and become viable once more. If not, its liquidation could affect all the Richardson hotels in the area.

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Torquay’s Famous Grosvenor Hotel Goes Into Administration

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

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Betterware goes into administration soon after Kleeneze

Administration Flow Chart

in What Does Going Into Administration Mean?

See here some unique Administration flowcharts for your free use! They explain in English what happens in an Administration process where a pre-pack is used or where CVA follows. administration-followed-by-cva Admin Pre Pack Flowchart - PDF So would you now like to know why Admin pre-pack selling the business to directors is favoured by Insolvency Practitioners BUT, not necessarily by the clearing banks? Call Keith Steven on 07833 240747 to find out more and how a CVA can achieve huge change while leaving YOU in control!

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Administration Flow Chart

Another customer safe from administration and in a CVA

in What Does Going Into Administration Mean? What is a CVA (Company Voluntary Arrangement)?

A recent customer admitted other potential advisors were pushing for them to go into a pre pack administration, but with KSA's help, this business is in a CVA and will continue trading and returning money to creditors, including paying back a proportion of their £500k of tax liabilities to HMRC. We were sent the following email: All, I just wanted to thank you all for your assistance with the CVA preparation. With 100% of creditors voting in favour this is a testament to your experience and process in putting these together. The last few weeks has been a nerve wracking time and timing has been close to the wire, but the end result means that we are now well positioned to execute our plans going forward to the benefit of all. In deciding to go with KSA we had numerous other providers who were either cheaper or pushing a pre-pack route. You have delivered what you set out and certainly a much better outcome than administration. Marie, a special thanks for your efficient and calm handling of all the issues that have arisen, and Andrew – your “mother of all spreadsheets” will now double as our operating budget for next year. Finally, if you ever have any prospective clients who require a reference, I would be happy to talk with them. Regards

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Another customer safe from administration and in a CVA