Please visit https://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Friday, 26 April 2013

AGS Home Improvement in administration but buyers are waiting


Newton Abbot-based AGS Home Improvement Ltd, which was one of South Devon's biggest employers, and was established for almost 40 years, has gone into administration with a loss of around 125 jobs.

​The company  specialises in the supply and installation of aluminium and PVCu windows, doors and conservatories in South West.

The insolvency practitioner, Mark Bowen of MB Insolvency is now looking to sell parts of the business.  He also said; "We had to make the employees redundant as we couldn't pay them while in administration. Purchasers of the business will help resecure the employment for a considerable amount of former workers."
Mr Bowen added that buyers should be secured on Monday.

This all looks quite positive if the employees can be re-employed.  So what has happened?  The administrator had to make the employees all redundant as he cannot run the business at a loss.  However administration is a powerful rescue technique and so all onerous contracts can be terminated and debts, including secured debts can be compromised.  If a buyer can  be found then the business will be rescued.

Why not a pre pack?

Well, an administration sale should be able to get around the TUPE issues, which are where the employees contracts are transferred to the new company so any redundancy costs have to be met by the buyer.  One still needs to be careful as if it can be shown that the new buyer agreed to just wait until the company went into administration in order to pick up the business at a much reduced price then TUPE could apply.  The law is still very fluid on these points so before going into administration and thinking of selling the assets it is essential that you seek legal advice

Blogged by Robert Moore

No comments :

Post a Comment

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

Web Analytics