Accountancy firm, MG Associates, saved in pre pack deal

14 April 2016

The Devon-based firm was sold to MG Accountants Limited. Michelle Weir from Lameys Business Recovery was appointed administrator to oversee the process.  


The firm had encountered litigation problems previously, making it unable to meet its financial liabilities. 
A pre-pack administration deal often takes place upon appointment of the administrators and is often sold to a third party or new company. The deal ensures the business continues running, saving jobs in the process. 


In this case, the firm was bought by the director’s wife (owner of MG Accountants Limited). There will be no disruption to the business and staff remain in the same positions.


In a statement Weir said, “We are pleased to have been able to secure a sale of the business which will facilitate a return to the company’s unsecured creditors and saved jobs. The only real alternative was to liquidate the company and that would have been far worse for the creditors, staff and customers.” 


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