Retail Pack

There are a plethora of reasons to why pre pack administration/phoenixing can help you successfully manage and deal with a company facing administration and business bankruptcy. To give you an idea the team at Real Business Recovery, have listed the advantages to help you get the most out of your business.

•    Less disruption
When a company enters into administration it is usually the case that the business assets are divided and sold to a variety of buyers. The core business is therefore lost and the remaining assets of the company are wound up. With a phoenix company the core business is able to continue to trade without staff and customers seeing significant disruption.

•    Preserves company brand
A lot of the old company’s assets within the process of pre pack administration rely heavily upon the brand and good will of the old business. If the company goes into administration straight away then brand and goodwill could potentially be lost. With a pre pack administration scheme, the new company is able to make full use of the brand value.

•    Jobs
Team of employees can be kept together with a pre pack administration process. The scheme can minimise redundancy allowing employees to remain in their job while the company is still ongoing.

•    Trading continues
When the old company falls into administration, the new company can continue to trade to customers and suppliers. There will be outstanding debts from the old company, however these would continue to exist if the pre pack administration wasn’t in place, therefore making it the more feasible option to preserve future business with the new company than none at all.

For more information and advice on the process of pre pack administration as a way to reduce your business debts and start a new chapter, speak to the Real Business Recovery team who can arrange a free face to face visit to discuss your debt problems.