IPA exclusive industry update from Insolvency Insider
IPA Insolvency Practitioner newsletter, December 2022
Contents
- Paul Smith, CEO
- Anti-Money Laundering Digest
- High-risk countries for money laundering purposes: Enhanced Due Diligence
- Proliferation Financing
- What a day at the Personal Insolvency Conference…
- …and what a night at the Awards Reception!
- IPA Learning | Mitigating your risk: a practical guide to insurance in insolvency (CPD: 1.5h)
- The Power of Diversity: The Key to Unlocking Talent in Insolvency (CPD: 4h)
- IPA Annual Conference 2023 (CPD: 6h)
- Membership and licence renewals
- NEW member benefit: Discounted meeting facilities from Office Space in Town (member login required to view)
- Save money on your airport parking with APH! (Member login required to view)
- 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)
- Business Banking Resolution Service: Insolvency Practitioners & Dissolved Complainant Waivers
A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Henry Louis. More information on all the stories and the link to subscribe to the newsletter is here.
Recent Insolvencies
- Joules Group plc and Joules Ltd, a fashion chain and lifestyle brand which employs more than 1,600 people across the UK, entered administration on 16 November. The AIM-listed business was impacted by the rising cost of living, which has significantly affected consumers’ disposable income. It fell into administration after failing to secure an investment and had reportedly been in talks with Next (which ultimately acquired the brand, website and intellectual property of Made.com), but discussions collapsed in September. Will Wright, Ryan Grant and Chris Pole of Interpath Advisory were appointed Joint Administrators. Will Wright and Ryan Grant were also appointed Joint Administrators of Joules Developments Limited, a connected building company, as well as The Garden Trading Company, a furniture and accessories company which was purchased by Joules in 2021. The Joint Administrators plan to operate all stores as a going concern while exploring a possible sale, having already received “overwhelming” interest in the business. Barclays Bank PLC has registered charges against both companies.
- CargoLogicAir Ltd, a UK freighter operator, entered administration on 16 November, with David Buchler and Jo Milner of Buchler Phillips being appointed Joint Administrators. The Joint Administrators stated that the administration was “a very unfortunate, unintended consequence of sanctions generally applied against British businesses perceived as Russian-controlled”, and that the company had been “unable to trade effectively since its majority shareholder and former director, a Cypriot national, was made the subject of UK government sanctions against businesses deemed Russian-controlled following the invasion of Ukraine in February.” Although the company had considerable funds in its bank account, which should have left it solvent, a source said that “every attempt by [the company’s] management to wind the company down and assist staff was stopped because of the sanctions.” The company employed approximately 130 people prior to the sanctions and turned a profit in 2020. Arosa Leasing Limited and Barclays Bank PLC each has a registered charge against the company.
- Elite Sports Group Limited, which runs the club shops and online retail operations of a number of Premier League and EFL clubs and distributes the products of kit suppliers Hummel to clubs such as Southampton and Coventry City, entered administration last week. The company had recently sued Rangers for £9.5 million, alleging Rangers had breached a contract which allowed the company to provide kits to the team. Various clubs linked to the company, including Southampton, confirmed their club shops were closing down. Close Brothers Limited and Neil Friar each has a registered charge against the company.
Insights
- New research from KSA Group shows that male-owned businesses were over 40% more likely to go into insolvency between October 2021-22 than those run by females, and that the gender difference was even more pronounced before the pandemic, with male-dominated businesses having been 70% more likely to enter insolvency than female-dominated firms in 2018.
- Sophia Bompas and Christina Fitzgerald of Edwin Coe summarise a recent case which serves as a warning to IVA creditors whose debts are challenged that they should engage with the court proceedings and file evidence to substantiate their debts.
- Prav Reddy, Mark Johnson, Martyn Strong, Rhodri Preece and Dominique Hodgson of Katten share that, following the conclusion of the arbitration scheme for commercial landlords and tenants, and the accompanying moratorium on landlord enforcement, landlords are once again free to exercise their usual remedies for non-payment of rents.
To stay current on all market news and insights, make sure you subscribe to Insolvency Insider’s free weekly newsletter.