Rangers FC enters Administration

Whilst at the moment it is the Rangers FC fans who are bemoaning the fact that their club has entered into Administration as a result of debts to HMRC, in the longer term it will be their perennial rivals Celtic FC who have the most reason to grumble.

With retailers reporting falling sales in January, and consumer confidence showing no signs of improvement amidst headlines warning of a double dip recession, it seems likely that the number of businesses requiring formal insolvency advice is likely to continue to increase.

Corporate insolvencies are increasing and the warning signs should be spotted early to ensure businesses can be turned around and move forward to success.

With the current economic climate, warning signs within the business should not be ignored as this could mean that the leap from insolvency to success will shorten.

Pre-Pack Administration

After a long drawn out review of the current system Ed Davey, Minister for Employment Relations, Consumer and Postal Affairs, has confirmed the thoughts of most of those operating in the insolvency profession.

In a recent statement Mr Davey, speaking on behalf of the Insolvency Service, commented:

“Having taken account of all the issues, the government is not convinced that the benefit of new legislative controls presently outweighs the overall benefit to business”

The current system allows directors of insolvent companies, with the aid of a licensed insolvency practitioner, to close down an ailing company and, often with the same directors and management in place, take the business forward through a new limited company without the burden of debt.