How to Protect Customer Deposits Without New Legislation

Britain must have new legislation to ensure cash from deposits and voucher sales is returned to customers when a retailer goes into administration, according to the Institute of Chartered Accountants of Scotland (ICAS). The call follows the recent insolvencies of retailers such as music chain Zavvi and furniture supplier MFI where customers lost cash paid…

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Government’s Pre-Pack Administration Reforms Too Soft

A few weeks ago, the Parliamentary Under-Secretary of State responsible for the insolvency regime, Ed Davey, unveiled a series of proposals aimed at reforming ‘pre-pack’ administrations. These include forcing insolvency practitioners (IPs) to give creditors prior warning about the sale of significant proportions of a company’s assets to a connected party. Under the terms of…

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Insolvency Practitioners’ Campaign against Energy Firms and Suppliers is Pointless

Britain’s leading professional association for insolvency and business recovery specialists has launched an astonishing attack on suppliers who raise prices or stop serving companies that have fallen into insolvent administration. According to R3, debt-chasing suppliers such as utility companies are responsible for 14% of liquidations and the rapid increase in pre-pack administrations, in which a…

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Sports Celebrities Snookered by Management Firm Liquidation

The liquidation of a management firm whose clients included sports stars such Ronnie O’Sullivan, Stephen Hendry and Olympic gold-winning cyclist Sir Chris Hoy is likely to set a lengthy court battle in motion. According to the Daily Mail, several of 110 Sport Management (110SM)‘s former clients are preparing to launch compensation claims for outstanding payments against…

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Johnson Matthey Bank Bailout Fraudster Jailed After 25 Years

A fraudster linked to the spectacular collapse of Johnson Matthey Bank (JMB) has been jailed in London for 16 months – more than 25 years after his crimes were committed. Prosecutors were unable to bring proceedings against Vasant Advani, 67, after he left the Capital for West Africa in 1986.

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