I’ve been made redundant due to my employer entering CVA, receivership, liquidation or administration. What now?
If you just been told that your company has gone into administration then email me at robertm@ksagroup.co.uk Please give us the name of the company and I will find out what I can for you.
In return please can you social “like”, “tweet” or “bookmark” this page so others can find out about it.
Thanks. Alternatively you can look at our Facebook page for redundant employees or download our employee guide for insolvency situations.
Or you can watch this video that explains your rights.
This can be a real shock to you and we know that many people get very little help from the receiver or administrator. So read our guide below and or download this guide from DBT,
DBT guide for employees
If you have any questions the guide or the Department for Business Energy Innovation Skills (formerly DTI and DBERR) should answer them, otherwise email us and we will try to help.
Department for Business and Trade (DBT)
There is a helpline to answer your questions. The number to ring is 0845 145 0004 (calls are charged at local rates).
Once the total claims have been worked out the employees can claim directly from the Department for Business and Trade (DBT) who then stands in the employees’ shoes and can claim against the company.
The purpose is to guarantee minimum payments to the employees which may not (and often are not) paid out of the insolvency as a result of insufficient funds or to avoid preferences. All employees claims are calculated as per the guidelines in the legislation but the actual payments made by the Government are subject to maximum “capped” payments. The limit on the amount of a week’s pay under the insolvency provisions of the Act is currently £751 per week, as of April 2026, the cap is reviewed annually.
Most people are paid weekly or monthly in arrears. This claim is limited to 8 weeks at the statutory limit of £751 per week and includes salaries, wages and sales commissions.
Holiday pay is limited to 6 weeks of holiday pay due, in the current holiday year, at the statutory limit of £751 per week. I.e you won’t be paid “rolled” over days
Under the contract of employment between employer and employee any required notice amount due from the employer is payable at the statutory limit of £751 per week. However, benefits and/or money earned obtained further employment during your notice period paid to you will be deducted from your compensation. It is important to claim benefits as these will be automatically deducted from your claim even if you have not claimed them.
Redundancy is where the employer has ceased or intends to cease the business, or the business in the place where the employee is employed. The requirements of that business for the employee to carry out his or her particular kind of work, or to carry out a particular kind of work in the place of the employee’s employment have ceased or diminished, or are expected to cease or diminish. Any amount payable is capped at a ceiling of £751 per week. This statutory redundancy payment is calculated by reference to the following factors.
Here is a calculator to show how much is owed to you. https://www.gov.uk/calculate-your-redundancy-pay
The maximum number of years to be taken into account for the purposes of calculating a redundancy payment is 20 and the entitlement is calculated as follows:
As ever redundancy claims are complex and the brief outline here is not comprehensive or case specific.
If your employer is declared insolvent, or cannot or refuses to pay, and you have done everything you can to get your payment, you can apply to the Department for Business and Trade (DBT) for a direct payment from the National Insurance Fund.
But you must have applied in writing to your ex-employer for a payment within six months of the date your employment ended, or applied successfully to an employment tribunal within the six months after that.
Please be aware that Department for Business and Trade (DBT) will seek to mitigate payments to redundant employees by assuming that they are claiming job seekers allowance. Any pay received in the period between redundancy and claim payment will generally be deducted. So it’s probably best practice to make those claims anyway to help relieve financial hardship.
Written ByKeith Steven
Turnaround Director
Keith is the Turnaround Director of RMT Accountants & Business Advisors. Prior to being acquired by RMT his company KSA Group has undertaken more than 300 CVA led rescues. Read our case studies to see how.
Shoe Chain Wynsors Looking At A CVA
Investment firm Modella Capital has reportedly briefed staff on plans for a Company Voluntary Arrangement (CVA) for its recently acquired budget footwear chain, Wynsors World of Shoes, just six months after purchasing it.The restructuring plan is expected to seek rent cuts at 36 of the chain's 47 Northern England stores. It may also lead to select store closures, the shutdown of two distribution centres, and potential job losses for up to a quarter of Wynsors' 400 employees.Modella targets distressed UK retail businesses. While it successfully turned around Hobbycraft, other recent acquisitions—such as Claire’s UK and The Original Factory Shop (TOFS)—collapsed within months of purchase. The firm also owns TG Jones (formerly WH Smith), which is considering store closures, and recently bought Flying Tiger.
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Radley In Administration Sale
Update 27th MayGordon Brothers confirms the sale in their press release.-----------------According to Sky News Radley, the British handbag and accessories brand, is understood to be close to being sold to Gordon Brothers, the investment firm which also owns Poundland.According to reports, the deal could be completed through a pre-pack administration, with FTI Consulting lined up to act as administrator. The proposed sale is expected to focus on Radley’s brand and intellectual property assets, rather than its existing retail operations.This means that further job losses in the retail sector are likely, although the exact number of affected employees is not yet clear. Retail Stores Expected To Be At Risk The most significant concern is that Radley’s shop estate may not form part of the sale. If the buyer is mainly acquiring the brand, online business and intellectual property, this would leave the company’s physical retail operations exposed. Currently the brand has 2 main stores in Glasgow and London with an additional 19 "outlet" storesRadley has already taken steps to reduce its store commitments. Recently filed accounts showed that the company paid to surrender leases early on three shops in the United States. The US market accounted for around 15% of group revenue.The company has also been investing in its digital operations in recent years, with a greater focus on an omnichannel retail model. This reflects a wider shift in retail, where brands are increasingly trying to reduce exposure to costly stores while improving online sales and direct-to-consumer channels. Falling Sales And Losses Radley reported a loss of £2.2m for the year to April 2025. Revenue also fell from £72m to £65.8m, underlining the pressure on the business.The brand was put up for sale earlier this year by Freshstream, the private equity firm which has owned Radley for around a decade. A previous strategic review took place last year but did not lead to formal talks with potential buyers. Pre-Pack Administration Likely A pre-pack administration allows a sale of the business or its assets to be arranged before administrators are formally appointed, with the transaction completed shortly afterwards.This can preserve value in the brand and allow parts of the business to continue trading. However, it can also mean that unprofitable stores, leases and other liabilities are left behind in the administration, leading to redundancies and creditor losses.For Radley, the strength of the brand may still be attractive to a buyer, particularly if the business can be reshaped around digital sales, licensing, wholesale and a smaller retail footprint.For employees that remain in a Pre Pack Sale their contracts will continue under the TUPE rules. But this is a complex area of the law. Another Sign Of Pressure On UK Retail Radley’s difficulties come at a time when many retailers are facing rising costs, weaker consumer confidence, expensive leases and increasing pressure on margins.Fashion and accessories brands have been particularly exposed, with shoppers cutting back on discretionary spending. For businesses with physical stores, the challenge is even greater, as rent, staffing costs, business rates and stock commitments can quickly become unsustainable if sales fall.The expected deal with Gordon Brothers may preserve the Radley name, but it is unlikely to protect all of the existing retail operation. This is another example of a well-known consumer brand being rescued in some form, while shops and jobs remain at risk.
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Spaghetti House Enters Administration With All Restaurants Closed
Spaghetti House, one of London’s longest-running family-owned Italian restaurant chains, has entered administration, bringing 70 years of trading to an end.Lavval Restaurants Limited, which traded as Spaghetti House, was placed into administration on 6 May 2026. Asher Miller and Stephen Katz of BTG Begbies Traynor were appointed as joint administrators. The administration notice lists the business as licensed restaurants trading under the Spaghetti House name.All remaining restaurants have now closed with immediate effect. The closures include sites at Marble Arch, Carnaby Street, Oxford Street, Kensington High Street and Cranbourn Street. The original Goodge Street restaurant, where the business began in 1955, had already closed last year.A statement on the Spaghetti House website said: “We’re sorry all our restaurants are now closed.We would like to express our deepest gratitude to our loyal customers, partners and team members, past and present, for your support over the years.From our family to yours, Grazie.” The business was founded by Simone Lavarini and Lorenzo Fraquelli in 1955, with the first restaurant opening on Goodge Street in Fitzrovia. Over the decades, Spaghetti House became a familiar part of London’s casual dining scene, operating multiple restaurants across the capital.Luigi Lavarini, executive chairman and chief executive of Lavval Restaurants Limited, said the decision had been taken “with a heavy heart” after years of difficult trading conditions. He cited rising costs linked to the pandemic, Brexit, government budgets and wider global instability as factors affecting the hospitality sector.BTG Begbies Traynor said the company had been affected by challenging market conditions, including rising operational, employment, energy and tax costs. The administrators will now oversee the wind down of the company, realise assets, assist former employees with claims and report to creditors in line with their statutory duties.The closure is another example of the pressure facing hospitality businesses, particularly those operating from city-centre sites with high rents, wage costs, energy bills and reduced consumer spending. Even well-established brands with long trading histories can become vulnerable where customer numbers fail to recover sufficiently and fixed costs continue to rise.For Spaghetti House, the administration has resulted in the immediate closure of all restaurants, ending a business that had been part of London’s restaurant landscape for seven decades.
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Poundstretcher in Administration Threat If Restructuring Plan Not Approved
Poundstretcher has warned that it may have “no choice” but to enter administration if a proposed restructuring plan is not approved.The discount retailer, which operates around 300 stores and employs approximately 3,000 people across the UK, is seeking creditor support for a court-backed restructuring plan designed to stabilise the business and allow it to continue trading.Lawyers for the company told the High Court that the business faces a serious funding shortfall. The court heard that Poundstretcher has insufficient funds to meet a £2.8m payment due in late June, with the shortfall expected to rise to £9.7m by the end of July if the restructuring plan is not implemented.Tom Smith KC, representing Poundstretcher, said in written submissions that if the plan is not approved, the directors would likely be forced to place the company into administration. In that situation, administrators may only be able to keep the stores trading for a short period while remaining stock is sold.The retailer has faced increasing financial pressure in recent years. The court was told that the group’s performance has continued to deteriorate due to subdued customer confidence, rising operating costs and inflationary pressures.Poundstretcher had already approached landlords in March to request rent reductions as part of efforts to secure the long-term future of the business. At that stage, the company said stores and jobs were safe.The proposed restructuring plan is intended to restore financial stability and allow the company to implement a wider turnaround strategy. This includes changing the product mix to include more well-known household brands and optimising the store estate, including selective openings in higher-footfall locations.Mr Justice Hildyard has given permission for creditors to meet on 26 May to vote on the proposed plan. If approved by creditors, the plan will return to the High Court on 4 June for a sanction hearing.A spokesperson for Poundstretcher said: “We welcome today’s court decision that allows our plan to proceed.” What Is A Restructuring Plan? A restructuring plan is a formal rescue procedure under Part 26A of the Companies Act 2006. It allows a company in financial difficulty to propose a compromise or arrangement with creditors, shareholders or other stakeholders.Unlike a CVA, a restructuring plan requires court involvement. It can also, in certain circumstances, be approved even where some classes of creditors vote against it. This is known as a “cross-class cram down”.For larger companies with complex creditor groups, restructuring plans are increasingly being used as an alternative to administration or a CVA. They can be particularly useful where a business needs to reduce lease liabilities, defer payments, restructure debt, or secure new funding as part of a wider turnaround. Could Poundstretcher Still Enter Administration? Yes. If the restructuring plan is not approved by creditors or sanctioned by the court, the company has warned that administration is likely. This would place the business under the control of licensed insolvency practitioners, whose role would be to protect creditors and achieve the best possible outcome.In many retail administrations, stores may continue trading for a short period while options are explored. However, if no buyer or rescue deal is found, store closures and redundancies can follow. Commentary This case shows how severe the pressure remains on the UK retail sector. Even well-known high street brands are facing a combination of weaker consumer confidence, increased wage costs, higher rent and business rates, and continuing inflationary pressure.For retailers, early advice is essential. Options such as a CVA, restructuring plan, administration, refinancing or informal creditor negotiations may be available, but the sooner advice is taken, the more rescue options are likely to remain open.
ReadFranca Manca’s CVA Approved
According to Propel, the hospitality newsletter, Franco Manca has secured creditor approval for its Company Voluntary Arrangement, allowing the pizza chain to push ahead with a restructuring plan aimed at stabilising the business.The CVA was backed by more than 90% of voting creditors by value, giving the Fulham Shore-owned brand the approval needed to restructure its leasehold estate and focus investment on its stronger-performing restaurants. As part of the arrangement, 16 of Franco Manca’s roughly 70 sites will close. The affected locations include Battersea, Bishop’s Stortford, Brixton, Broadway Market, Bromley, Cheltenham, Chiswick, Didsbury, Glasgow, Hove, Kilburn, Lincoln, New Oxford Street, Plymouth, Stoke Newington and Tottenham Court Road.Fulham Shore said the CVA will enable Franco Manca to invest in its retained estate and continue developing the brand as a leading Neapolitan pizza operator in the UK.Marcel Khan, chief executive of Fulham Shore, said the support from creditors would help put the business “back on a firm footing” and allow the company to strengthen its customer offer and performance.The restructuring comes amid continued pressure on the casual dining sector, where rising costs, cautious consumer spending and weaker sites have made trading conditions difficult for many operators.Alvarez & Marsal advised on the process. Paul Berkovi, managing director at the firm, said the result reflected constructive engagement from creditors and provided Franco Manca with a platform to complete its financial restructuring and operational turnaround.The CVA follows wider restructuring activity at Fulham Shore. The Real Greek, also previously part of the group, recently saw 19 of its 28 sites acquired by Karali Group through a pre-pack administration.Franco Manca’s latest accounts show turnover rose to £70.1m for the year to 31 March 2024, up from £64.5m the previous year. However, headline EBITDA fell from £7.3m to £5.9m, while pre-tax losses increased significantly from £413,000 to £3.4m.The approval of the CVA gives Franco Manca breathing space to close loss-making locations, reduce pressure from creditors and focus on the parts of the business that remain viable.
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