Insolvency Insider industry update

IPA Insolvency Practitioner newsletter, July 2022

Contents

• Paul Smith, CEO
• Samantha Keen, President
• AML case studies
• Russian sanctions reminder
• Committee for Advertising Practice Enforcement Notice reminder
• HMRC update
• Don’t miss our final four Roadshows for 2022 this autumn…
• The IPA Awards Reception
• Personal Insolvency Conference – take advantage of earlybird rates for a limited time only!
• Exclusive discounts on training from the IPA and our partners – make savings on essential CPD
• Pride is about more than just rainbows – it’s about radical change
• Vacancy: Lay member of the IPA Anti-Money Laundering Committee
• Need new IT products? Claim exclusive IPA membership offers from Dell
• CPI training with BPP – special offer for IPA members (member login required to view)

A quick tour of the insolvency headlines from the last several weeks for the benefit of those not receiving Insolvency Insider’s weekly emails. More information on all the stories and the link to subscribe to the newsletter is here.

Recent insolvencies

• Teneo were appointed administrators of fashion retailer Missguided on 30 May. The business was sold days later to Frasers Group. A warehouse sale by the new owner had suppliers up in arms, as many of the sale items were never paid for. One factory owner was convinced that the collapse was 100% pre-planned, telling Sourcing Journal that the company “bought massively” in the first four months of the year even after cracks in its business had appeared.

• Begbies Traynor were appointed administrators of iconic British chocolate brand Rococo (reportedly the Queen’s favourite) on 9 June. The business was sold in a pre-pack deal. Kingsley Napley assisted the administrators on the file.

• Grant Thornton were appointed administrators of Aim Altitude on 21 June. The company designed and manufactured cabin interiors for the world’s major airlines on Airbus, Boeing and military aircraft from its base in Dorset.

Case updates

• Grant Thornton has settled the £200 million court case brought by administrators FRP and law firm Mischcon de Reya over its role in the collapse of its former audit client, Patisserie Valerie.

• Quantuma has completed a deal to rescue Derby County, nine months after the football club entered administration. 

Insights

• The Insolvency Service has released its interim report on how the three permanent CIGA measures (restructuring plans, moratoriums and the restriction on ipso facto clauses) are faring in the insolvency market, noting that while the restructuring plan is meeting policy objectives, it is still seen by many as too costly and time-consuming for use by all sizes of company, with the costs in the mid-market estimated to be between £1m and £2m.

• The Insolvency Service has also released the results of its highly anticipated research into the treatment of landlords in CVAs, revealing that based on its analysis, landlords are equitably treated compared to other classes of unsecured creditors, despite arguments to the contrary.

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