Administration
Protects a struggling company from its creditors while an administrator tries to rescue it or sell the business. We help companies and directors in Leeds, Sheffield, Bradford and across Yorkshire and the UK.
Please note: this page is a brief, general overview to help you understand your options. It doesn’t cover every detail or every possible route, and it isn’t legal or financial advice. Every situation is different, so please talk to us before making any decisions.
In short: protects a struggling company from its creditors while an administrator tries to rescue it or sell the business.
Administration puts a licensed insolvency practitioner, called the administrator, in charge of a company that can’t pay its debts. While the company is in administration, creditors can’t take legal action against it without permission. This gives breathing space to work out the best way forward.
The administrator’s first aim is to rescue the company. If that isn’t possible, they try to get a better result for creditors than closing the company straight away would, often by selling the business and its assets.
What happens
- The directors, or sometimes a lender, appoint the administrator.
- The administrator takes control of the company and writes to its creditors.
- Within eight weeks, the administrator sends creditors their plan for the company.
- The business may keep trading while a buyer is found.
- Administration normally lasts up to a year, although it can be extended.
Things to know
- Sometimes the sale of the business is agreed before the administrator is appointed and completed straight afterwards. This is called a “pre-pack”. It can protect the value of the business and save jobs, because trading carries on.
- If the buyer in a pre-pack is connected to the current directors, there are extra checks to make sure creditors are treated fairly.
- The administrator must look into how the company was run and report on the directors to the Insolvency Service. This happens in every case.
Other options
Administration isn’t right for everyone. These are the other corporate insolvency options, or you can compare them all.
What our clients say
Facing my financial position was overwhelming, but Conselia provided me with clear guidance and support. They were professional, approachable, and always explained the process in a way I could understand. Thanks to their expertise, I was able to regain control of my finances and start fresh. Highly recommended!
IVA client
I can’t thank Conselia enough for helping me through such a difficult period. Their team was understanding and completely non-judgmental, providing solutions tailored to my situation. They made what felt like an impossible challenge manageable.
IVA client
From our first conversation, Conselia made me feel reassured and in safe hands. They handled everything efficiently and were transparent about every step. I now have peace of mind and a clear path forward, and I’m so grateful for their support.
Company director
Dealing with insolvency is never easy, but Conselia turned a stressful situation into a manageable process.
Company director
I was hesitant to seek help, but Conselia put my mind at ease right away. Their professionalism, knowledge, and understanding were second to none.
Company director
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