We are Company Rescue and Not Clear Company Rescue

Published on : 24th August, 2023

We are Company Rescue and Not Clear Company Rescue!

Clear Company Rescue are offering a solution to your issues by offering to buy your insolvent company.

Does this sound too good to be true?

The actual process is legal as there is nothing stopping anyone from buying an insolvent company in the hopes of turning it around.  However, if the correct course of action is that it should be liquidated, as the debts could never be paid back from current trading, then you have to think why would they do it?!

Why take on the debt and the hassle?  They will of course most likely allow the company to be wound up eventually by a creditor. Check whether you will be charged for this somehow.  Bear in mind that just resigning as a director of a company does not mean that any responsibility for what happened in the past is just wiped away. You could still be disqualified or made personally liable for any of the debts if you have not acted properly.  In addition, under the Insolvency Act 1986, when a company is insolvent the directors have a duty to act in the best interest of the creditors.  If you pay someone to take it off your hands are you actually acting in the best interest of the creditors or yourself?  It is questionable to be sure, and there may be action against you down the road when the company is eventually wound up by the court. Insolvency Practitioners are licensed and under the regulations they have to act in the best interest of creditors.

Be very wary if you somehow manage to keep the assets of the company without paying for them.  This can be what is deemed as a “transaction at an undervalue” and can be reversed up to 2 years later by a liquidator.

Also what about a preference?  If you pay back some monies to a family friend instead of HMRC or BBL then again that can be reversed or voided at a later date.

It goes without saying that selling the company will not absolve you of any personal guarantees that you gave on behalf of the company.

What if you owe the company money?  The new directors will pursue you for the debt.  Directors responsibility under law, if the company is insolvent, is to act in the best interest of creditors.  So they may pursue you personally for the debt.  Many directors are not aware that they owe the company money.  If you have paid yourself drawings and not via PAYE and now the company is insolvent it is highly likely that you owe tax that the company has to pay.  More on overdrawn directors loan accounts here.

Ultimately these sort of schemes and legal gymnastics carry risk. Insolvency is highly regulated and there are no shortcuts.

Do you want to take the risk and give your money to a firm that is unregulated by any professional body?

Remember that company directors are not protected by the law in the same way that general members of the public are.  They are deemed to be “street wise” and knowledgeable.  So there are no cooling off periods, consumer rights, ombudsmen, distant selling rights etc.

Kane’s Foods Goes Into Administration

A total of 662 jobs have been lost after Kane’s Foods in Evesham entered administration. PwC has been appointed as administrators and is now liaising with the town’s MP Nigel Huddleston and the Department for Work and Pensions. This is to ensure affected employees receive appropriate support and advice. Kane’s Foods was one of the largest employers in Evesham and had been a major part of the local economy for many years. Mr Huddleston had visited the business on a number of occasions. He said the closure would have a massive impact on local families and the wider community. “The closure of Kane’s Foods is devastating news for the Vale of Evesham and, most importantly, for the hundreds of people and families who have lost their jobs. “I was contacted by PwC this morning, who have been appointed as administrators, and they confirmed the company has entered administration with the loss of 662 jobs.” He added, having spoken to many of Kane’s employees over the years, he knew just how many local families have relied on it for their livelihoods. Mr Huddleston added: “My thoughts are very much with all those employees who have been affected, and with their families, at what will be an incredibly difficult and worrying time. “Understandably, many will have questions about redundancy payments and will want help finding alternative employment as quickly as possible. “It is not yet clear whether any parts of the business may be sold, and I am also conscious that the collapse of such a significant local employer could have a knock-on impact on other businesses in the supply chain. “I will continue liaising with all relevant stakeholders, and my team and I will provide whatever practical support we can to constituents affected by this devastating news.” He added further updates would be given as more information became available, including on support for employees and the future of any remaining parts of the business. Administrators appointed Timothy Andrew Higgins, Edward Williams and Helen Wheeler-Jones of PwC were appointed Joint Administrators of Kanes Foods Limited. Kane’s is a short-shelf-life food manufacturer producing pre-packaged salads, stir-fry products and sauces from a refrigerated manufacturing site in Evesham. It supplied a number of major UK supermarkets. Kanes Foods experienced financial difficulties in the period leading up to the administration. In June 2025, the failure of its wastewater treatment plant resulted in significant one-off costs and increased ongoing operating costs. This was followed by drought-related supply chain disruption during summer 2026, which further impacted trading. The directors explored refinancing and new funding options, and an accelerated sale process was subsequently undertaken. However, the company’s ongoing losses, negative cash flows and funding requirements meant that a solvent solution could not be achieved. The joint administrators will now manage the affairs of the companies and take steps to maximise realisations for the benefit of creditors.

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Kane’s Foods Goes Into Administration

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