The value of seeking professional and reliable administration advice has been demonstrated in new government figures relating to pre-pack administrations.
Pre-packs are a way of going into administration while quickly releasing assets from a business – the former directors can often purchase these and set up a new company to continue trading.
However, they have attracted criticism as they are not always perceived as being in the best interests of the creditors of a company.
Now the British Property Federation has expressed its own disappointment, as new figures show that a third of administration advice does not give creditors all of the information they need in order to understand the pre-pack process.
“We’re particularly concerned that, in some of the most high-profile retail insolvencies, tens of millions of pounds are lost in pensioners’ savings as concessions are extracted from landlords of profitable stores,” says BPF director of policy Ian Fletcher.
The concerns show the value of seeking professional advice from a reliable company when going into administration – for the sake of the business owners, company directors and creditors alike.