My understanding (and I’m happy to be corrected) is as follows:
Insolvent = not able to pay debts - i.e. rent/rates/suppliers bills are due but you’ve not raised the revenue to cover those bills. A criminal offence to trade when you are knowledgably insolvent.
Administration = accountants come along (a) if you think you are insolvent and want help; or (b) the Court steps in and decides that you need help. Effectively they are trying to rescue the business.
Example I’ve been involved in at work - an insolvent company who provided secured property funding has been taken over by the administrators - the administrators have seen that some properties were overvalued by a surveyor. As a result of the sh*tty advice from the surveyor - the company loaned £14 million to buy a property that was worth £3 million. The borrower goes bust and the loan was defaulted on - so the property was reposessed. But the property will never sell for £14 million - and we can’t sue the borrower - so to get the money back - the administrators have decided to sue the surveyor for negligence. If all goes to plan - we’ll get back a bucketload of money from the surveyors insurers - and the company will be rescued.
Liquidation = when the assets (raw material/products/property) are turned into money because the business is ending. The final step before dissolving a company.
Now - as far as I’m aware - you can’t trade when you’re insolvent or in administration - and why would you want to trade when you are in liquidation.
Happy to be corrected though. This is only what I’ve picked up as a lowly legal secretary - no formal training but plenty of nosing about
I’ve been thinking about this today - and have decided I was wrong - of course you can trade while you are In Administration … Woolies and Zavvi being the obvious examples …
The companies said “help” - administrators came in and made sod all difference - they went under …
If they are in liquidation - then they won’t be trading - so if they are still sending emails out saying “buy our stuff” - that would suggest that they aren’t in liquidation.
They are definately in liquidation - so the honest answer is - I don’t have a clue mate. Get back on to the Insolvency Service or Official Receiver and find out who you need to speak to to get your name down as a creditor then just hope for the best
From what I remember of my time in industry (and as a lay-man)
Liquidation is basically when a company is forced to cease trading by their bank or Tax/Vat man. They would have appointed a company called an Insolvency Practicioner who basically winds the bussiness up and tries to sell off the assets as a whole or via auctions etc. This is pretty final.
Administration is when the bank feels that there is a ray of hope and an Administrator is employed to try and turn the ailing bussiness around. I believe a company is still allowed to trade but will have trouble getting anything on account and all payments would have to be made in cash.
If they are insolvent, I believe its illegal to still tout for bussiness, knowing that the shutters are due to be pulled down. See if you can find out who their Insolvency Practicioners are and find out when the creditors meeting is.
Me and the missus went down to the shop again together.
We weren’t leaving without a refund or the goods.
Anyway, we met the deputy manager (not the tw@t manager that hung up on my girlfriend) who was very decent.
He apologised for what had happened and offered a full refund there and then, or any goods of the value we were owed.
He explained that, they were actually doing good business despite the liquidation and that they were in a position to get out of that.
Anyway, as my girlfriend needed some leather trousers, she got a pair, and although they were over the value we were owed, he gave us that because of the huge mess around.
I would go as far to say that if this guy owned the shop and was available when we made our original purchase, this problem wouldn’t have occurred.
Since he doesn’t, I won’t be going back to Cissbury leathers and I cannot recommend them.
Ran my card details through with out my consent two month after saying they dont have what I ordered anyway.Then sent me half of my order,wrong make,even when I repeatedly asked them not too.They never answer emails and the phone manor just rubbish.I WILL get a refund, if some one steals my wallet I will react,this is basicly what they have done.
Good luck with sorting it, I’m having problems with them & my gut wrench feeling is I’ll loose my money too I have a few long posts to write up in the shame/praise section and one will be on them!
God…sounds like a real nightmare for u guys !! i was stitched up by a company one time, i paid them, they delivered something totally NOT what id picked out with them, they took it back and said they would deliver the right one, of course they never, ended up in small claims court, couldnt get my money plus court costs back although i was awarded them, cos the guy had supposedly upped and run…i found his home address out, went round there and he was hiding in one of the rooms (stupid a-hole thought we couldnt see him hovering about by the window upstairs!) his missus gave us some bull about him leaving her and not there anymore …pair of bankers!
I was going to that address so many times i felt like a stalker, i gave up in the end cos there was no way in hell i was going to get my money…and i had won the court case as well !!