IPA exclusive industry update from Insolvency Insider
IPA Insolvency Practitioner newsletter, December 2024
A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Dina Kovacevic. More information on all the stories and the link to subscribe to the newsletter is here.
Recent Insolvencies
Relate, a relationship support charity with 23 locations across England and Wales, entered administration on 26 November. Originally known as the National Marriage Guidance Council, the charity has been running since 1938 and has been heavily reliant on government contracts. As a result, it was negatively impacted by the loss of its contract with the Department for Work and Pensions, its main partner for eight local authority areas in the North East of England, which came to an end in July 2022. Philip Reynolds and Ian Corfield of FRP Advisory were appointed joint administrators and said that around 200 people remain employed at the charity, while approximately 80 employees have been made redundant. The administrators also said that the central charity, as well as its network of 23 local charities, will continue to trade while the administrators consider restructuring options. However, the fate of Relate’s counselling service is less clear. National Westminster Bank has a registered charge against the charity. BDB Pitmans is assisting the charity.
Typhoo Tea, a Bristol-based tea company which was founded in 1903, has been rescued out of administration by Manchester-based Supreme, an AIM-listed retailer of vapes, batteries and vitamins. Philip Dakin, Janet Burt and Benjamin Wiles of Kroll were appointed joint administrators of Typhoo Tea on 27 November after the company experienced significant cash flow constraints as a result of supply chain disruptions and subsequent service issues. Supreme acquired the trade and selected assets of Typhoo Tea for £10.2 million. It’s unclear how many jobs will be saved by the rescue deal. Secured creditor Axis Trustee Services is represented by TLT. Karalius also has a registered charge against the company.
Dumbarton Football Club, a Scottish football club which competes in tier 3 of the Scottish Professional Football League, entered administration on 18 November. Ian Wright and Craig Morrison of Quantuma were appointed joint administrators and said that the club’s directors were left with no other option following the non-receipt of significant funds that were owed to the club from the sale of development land in 2021. The club employs 18 playing staff, six football staff and three club staff whose roles will be secure whilst the administrators assess options for the club. Pendragon Group and The Scottish Sports Council have registered charges against the company.
Insights
Andrew Cooke, Maura McIntosh and Matthew Leake of HSF summarise a recent Supreme Court decision which illustrates the limits of the assistance the English courts can give a foreign insolvency office holder in relation to English immovable property.
William Hardwick of Brabners considers whether English rugby is a loss-making industry and shares how some nations are presenting new models for how rugby can thrive.
Lee van Lockwood and Gordon Thomson of RSM UK explore the impact of incomplete development sites on lenders, including the key issues that need to be considered when a lender is forced to crystallise their position in relation to a part-built development.