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Entering Administration

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09 March 2009

Entering Administration

It seems to be the norm at the moment... we're all too familiar with headlines such as:

"Woolworths goes in administration" ..... "The downturn on the high street has claimed its latest victim after USC, ... USC in administration" ..... " Around 850 people lose their jobs at the failed childrenswear chain Adams when administrators announce the closure of 111 stores" I could go on. But what does this really mean? What IS administration? Well as I mentioned in an earlier Blog, my company has been granted an administation order and what it means to us is heartbreak, job losses, lost skills, lost hope, the end of a significant chapter, lost legacy etc. BUT it also means the beginning of a new chapter. The process has been awful. Administrators and insolvency practitioners, like banks, are simply doing a job and not with much humanity or sympathy it has to be said. The same applies to solictors - or certainly the ones involved in this instance. We are using a firm of lawyers that incorporated our company in 1935 but the contact there when carrying out the legal requirements for administration simply said, as I signed the paperwork "oh, what is it you did again?" and that was it. I left the solicitors in tears, one because of the duty and upset and two because of the cold and unfeeling chap I'd encountered. The procedure to him had been "come with me", "sign here", "repeat these words after me" and finally "that will be £5". I sat in the car and gathered myself together to face what tomorrow had to bring... an announcement to the work force many of whom I've known all my life and others who are dear friends. No matter what or how you look at this part of the process, it's going to be awful for all concerned.