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Pre Pack Administration Case Studies

• Poultry Suppliers
• Kitchen Accessory Manufacturer
• Carpet Retailer
• Promotional Merchandise Distributor
• Recruitment Company

Self Employed Sales Representative

2 partners running a large company which supplied fresh poultry to a range of supermarkets owed over £450,000.00 in tax and over £2million owed to other creditors. With a number of demands and failures to pay the tax debt and other outstanding debts, which the company had no prospect of paying, we were able to clear the company's debt by offering a pre-pack administration which enabled us to make his company insolvent and set up a new company with an almost identical trading name and assets but without the debt.

We also managed to ensure that the transition remained 100% confidential and that 100% of the staff remained in employment.

Our costs to the client were £27000 = OUR CLIENT WROTE OFF OVER £2.5 MILLION IN BAD DEBTS.

Self Employed Sales Representative

Due to the significant loss suffered by the company as a result of losing 2 major customers, the directors of the company were unable to meet the manufacturing costs of the kitchens and contacted us as they were concerned of the future viability of the company.

We reviewed the financial situation of the company and our analysis proved that the company would not be able to meet the historical liabilities and future liabilities as and when they fell due.

We were able to put the company into administrative receivership while setting up a brand new company with the same trading name which was used to purchase the assets and business from the failed company. The directors were able to continue trading in the new company without their previous debts.

Our costs to the client were £6000 = OUR CLIENT WROTE OFF OVER £400,000 IN BAD DEBTS & KEPT ALL HIS OLD STAFF.

Carpet Retailer

The carpet company had 11 retail outlets nationwide and their annual turnover was over £4m.

As a consequence of the increase in wooden and laminate flooring competition, there was a considerable reduction in the demand for the company's product throughout the UK. The company was in financial difficulty for over 2 years after which one of their key creditors threatened to take action and issue winding up procedures against the business.

We visited the director of the company and went through the best possible option for him to enable us to protect his business and all the assets of the company. We were able to put the company into liquidation and set up an identical company to the failed one without the previous liabilities incurred in the failed company.

Our costs to the client were £12000 = OUR CLIENT WROTE OFF OVER £1.2 MILLION IN BAD DEBTS & KEPT ALL 11 STORES AND RETAINED ALL BUT 1 MEMBER OF STAFF.

Promotional Merchandise Distributor

When developing the company the business and its customer base, the small monthly losses incurred while trading caused a build up over 5 years into unsustainable number of creditors, the main outstanding liability being the tax bill.

The company took measures to reduce staff and decrease overheads to the bare minimum but due to the level of failures to comply with payment demands and negotiations with existing creditors they were not willing to enter into a payment arrangement. As we could not negotiate with HMRC to put an affordable plan into place in order to protect the interest of the directors we liquidated the company and set the directors up with a new company and the same assets from our recommended insolvency practitioner within 4 hours of being appointment.

Our costs to the client were £4000 = OUR CLIENT WROTE OFF OVER £190,000 IN BAD DEBTS & KEPT ALL HIS OLD STAFF.

Recruitment Company

From sales of £2.5m pa and making £285,000 net profit in 2007-8, the company was severely hammered by the economic crisis and saw its sales fall to under £500,000 pa. The debts owed to HMRC were too big for the now smaller company to repay.

How could the company repay hundreds of thousands of tax debts, get rid of a lease on a too-big office and keep the business operation functioning? They had let most of the 25 recruitment consultants go and kept only the most productive sales staff. This meant that operational costs were much lower however the ball and chain of the outstanding debts remained.

Initially we considered a CVA however we were able to locate an investor for the business which meant that; a third party was able to offer office space and personal guidance to the management and that a new smaller business was set up which had no debt.

Our costs to the client were £5000 = OUR CLIENT WROTE OFF OVER £450,000 IN BAD DEBTS & KEPT ALL HIS OLD STAFF, KEPT THE OLD TRADING NAME AND AQUIRED A NEW THIRD PARTY INVESTOR.

Read More on Pre Pack Administration

Links to other pages within expresstaxsolutions.com which are related to Pre Pack Administration:

• Pre Pack Administration
• Pre Pack Process
• Pre Pack Code of Practice
• Pre Pack Funding
• Pre Pack Administration FAQ's