Past Times, the beleagured gifts chain, has not yet gone into administration as the High Court has granted it an extension of a further 10 days to do a deal before it has to formally appoint administrators. What has happened is that last minute talks with a potential buyer are being conducted and the Court believes there is a reasonable chance of a deal.
The notice to appoint an administrator is an important tactic in rescuing a company. Although it is a public event it stops creditors actions such as winding up petitions for a period of upto 10 days. In this time the company has to either appoint administrators or be sold off whole or in parts in order to pay back creditors.
It is very much a director and their advisors led procedure. When a business suddenly goes into administration what has usually happened is that a secured creditor, such as the bank, appoint administrators which they have the ability to do in order to protect their position.