Pre-pack administration – the old, new thing
Without it, no business would be able to function because they couldn’t get the word out about their products to the exact segment of customers most relevant to them.
Sadly it gets a bad reputation as some people and companies use this precise tool like a blunt instrument. When was the last time you were able to buy something without handing over an email address?
One of the negative examples is when an existing service or product is rebadged or repackaged to look like a brand new proposition – when it’s exactly the same thing that was being sold/done before.
The late Anthony Bourdain explained it perfectly in The Big Short – “It’s not old fish, it’s a brand new thing!”
In the past week alone, Oak Furnitureland, Accessorize, Monsoon, Le Pain Quotidien and Quiz have all been sold through pre-pack administrations while Bensons for Beds and All Saints are the latest companies to serve notice of appointing administrators with a view to being sold through pre-pack administration.
At least once a week, we have conversations with clients where they ask if they should be considering one of these new pre-pack administrations they’ve been hearing all about.
And because we’re insolvency professionals, not super slick sales sharks, we’re honest and tell them that pre-pack is just one of the many insolvency tools we have available to help their business and while it might be appropriate for some companies – its use is very specific.
There will be a solution for any company looking to take the time to restructure the business and the finances and come out of lockdown fighting fit and ready to re-establish themselves – it just might not be the one that everybody’s talking about.
We can get a deeper understanding of your company’s position and your plans and work with you to come up with a comprehensive plan to get there.
A pre-pack administration may be the best solution for your specific situation. Alternatively, a Company Voluntary Arrangement might be the optimal solution or events have changed the fundamental outlook for the business then liquidation may be the preferred method to close one chapter and allow you to open another.