IPA exclusive industry update from Insolvency Insider
IPA Insolvency Practitioner newsletter, February 2026
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
Ellis Noble Leisure Limited, the operator of the Blackpool cabaret venue Funny Girls, has entered administration, marking a further insolvency in the UK hospitality and live entertainment sector as operators contend with rising costs and softer consumer spending. Martyn Pullin and Gary Hargreaves of FRP Advisory were appointed joint administrators on 13 January, following a prolonged period during which the business had been marketed for sale, after its owner signalled plans to step back from day-to-day operations. Ellis Noble Leisure trades as Funny Girls, an internationally recognised drag and burlesque cabaret venue that has played a prominent role in the LGBTQIA+ cultural scene for decades. The business generates annual turnover of approximately £1.8 million and directly employs around 30 staff, with a similar number of performers engaged on a self-employed basis. Funny Girls operates from a five floor, Grade II listed former cinema building in Blackpool, featuring a large auditorium, restaurant space, nightclub, and ancillary performance areas. The property had been marketed by advisers with an asking price of £3.5 million, reflecting both its scale and its landmark status. The venue previously entered administration in 2018 before being acquired and later returned to the control of its founder, who had announced intentions to retire after more than 30 years at the helm. The administrators have not yet confirmed the immediate trading status of the venue or whether a sale or restructuring process will be pursued.
Johnsons 1871 Limited, a Cheshire-based removals and relocation services provider with more than 150 years of trading history, entered administration on 28 January 2026. Andrew Poxon and Steven Muncaster of Leonard Curtis were appointed as joint administrators. Immediately following their appointment, the administrators completed a sale of the business and assets to Amer Logistics Limited, securing the continuation of trading and preserving approximately 150 jobs. The transaction was implemented on a going-concern basis, allowing the business to transition seamlessly to new ownership with no interruption to customer services. Founded in 1871, Johnsons 1871 operates nationally across home removals, storage, office relocations and move management, serving a mix of public sector and blue-chip corporate clients. Headquartered in Knutsford, Cheshire, the family-run business had built a long-standing reputation as a full-service relocation and installation provider, with operations supported by a significant fleet and warehousing infrastructure. Despite its established market position, the company encountered acute financial pressure in the lead-up to the administration. Rising fuel, energy, and labour costs weighed heavily on margins in a capital- and labour-intensive operating model, while broader economic conditions constrained pricing flexibility across the removals and logistics sector. The administrators pursued an accelerated sale process to preserve enterprise value and protect the workforce, concluding that a prompt transaction offered the best outcome for employees, customers, and other stakeholders. The pre-packaged nature of the sale enabled the buyer to acquire the core trading business free from legacy liabilities, while retaining the brand, contracts and operational platform.
Delta Nottingham Hotel Limited, which trades as The Nottingham Belfry Hotel and Spa, has entered administration, with Ian Corfield and Anthony Simmons of FRP Advisory appointed as joint administrators on 7 January 2026. The appointment places the well-known East Midlands hotel and spa under formal insolvency protection while a sale process is pursued. The administrators confirmed that the business continues to trade in the ordinary course, with all guest reservations and event bookings being honoured. All employees have been retained at this stage, with the hotel employing approximately 120 staff as of the end of 2024. FRP said the objective of the administration is to secure a going concern sale that preserves the hotel’s operations and protects jobs over the longer term. The Nottingham Belfry operates as a full-service hotel with extensive conference facilities, accommodation and a spa offering, and has built a strong regional profile as both a corporate and leisure destination. Administrators described the asset as having a solid market position and an established customer base, notwithstanding the wider pressures facing the UK hospitality sector.
Insights
Tim Carter and Matthew Padian of Stevens & Bolton forecast that UK restructuring and insolvency activity in 2026 will remain elevated across distressed sectors such as retail, hospitality, construction, manufacturing, automotive and commercial real estate, with rising employment costs, cautious lending, tighter director scrutiny, regulatory friction, a potential CVA revival for simpler restructurings, and continued pressure on directors to act early shaping outcomes.
Dipesh Dosani of Lincoln and Rowe explains that HMRC can impose a punitive Section 455 charge on close companies with overdrawn directors’ loan accounts, alongside potential personal tax charges where loans are cheap, written off or mishandled in insolvency, with recent tribunal decisions underscoring that timing, documentation and formal release mechanics are critical in determining whether tax liabilities crystallise.
Sarah Foster, Barry Davies and Laura Newbery of Addleshaw Goddard share that a High Court decision in the Communisis administrations confirms administrators only need consent for extensions from preferential creditors with a genuine, present economic interest at the time consent is sought, endorsing a pragmatic, evidence-based approach that prioritises value maximisation over technical formalism.