Geoff Rowley and Phil Reynolds of FRP were appointed joint administrators by way of a "Skype" hearing at court, necessary because of the unique circumstances presented by COVID-19.
The directors made the decision to place the company into administration after a sustained period of challenging trading conditions, which have been exacerbated by COVID-19 and the broader issues currently facing the UK’s retail and hospitality sector.
A team led by restructuring partner Drew Sainsbury and corporate partner Bruce Hanton, counsel Inga West and senior associate Maria Staiano-Kolaitis advised the company in the period immediately prior to the appointment of administrators. They are working closely with the joint administrators to safeguard the livelihoods of the 2100 employees via access to the Coronavirus Job Retention Scheme and to maximise the potential for a successful "Rescue Administration".
This is further to the Ashurst joining together with other insolvency professionals in the Insolvency Lawyers' Association and the City of London Law Society to launch "Rescue Administration" repurposing administration to save COVID-19 stricken businesses.
Drew Sainsbury said:
"Despite the announcement that the UK Government will rush through 2018 insolvency reform proposals and temporarily suspend wrongful trading director liability, the 'rescue administration' concept' may prove to be the most effective restructuring tool in the coming weeks to help avert truly terminal corporate insolvencies."
Ashurst has also advised the board of rent-to-own company, BrightHouse, on its administration, also announced today.
