At a glance
The administrators were appointed to a recruitment business amid significant creditor pressure. A pre pack administration was identified as the most effective way to preserve value and protect employment. The business was sold swiftly through a pre pack sale, delivering continuity of trade and job retention for employees.
Why the client needed our help
We acted for the administrators of a company operating in the recruitment sector, which was facing considerable creditor pressure and increasing financial uncertainty.
The company continued to trade but was no longer able to manage its liabilities in a way that protected creditor interests. An assessment of the available options concluded that a pre pack administration would be likely to achieve a better return for creditors than an alternative insolvency process.
The administrators therefore required prompt legal support to stabilise the position and implement a controlled sale of the business.
How we helped
We assisted the administrators throughout the administration process and oversaw the legal aspects of the pre pack sale.
Our involvement included advising on the sale strategy, coordinating the transaction timetable, and ensuring that the sale was completed efficiently and in accordance with insolvency legislation and best practice. This enabled the administrators to progress the sale without unnecessary disruption to the business or its workforce.
The outcome
The sale was completed quickly and effectively through a pre pack administration. The transaction preserved the ongoing business and ensured the retention of employees, avoiding the immediate job losses that would have been likely in a liquidation scenario.
As a result, the administrators were able to deliver continuity for staff while achieving a more favourable outcome for creditors than would otherwise have been possible.
