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ROY T | When administrators are called into a company in trouble what does it usually mean and what do they do? |
Soon administrators are due to come into the company i work for and i want to know does it mean doom or what? Anyone who has been in a similar situation please let me know and thanx in advance. |
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poppy vox
 |
Usually it means that the employees are f ucked. |
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pinklady
 |
It means your company is bankrupt ie it does not have enough money to pay all its creditors (people it owes money to)
The administrators will sell off as many assets as it can which the company owna and then distribute this pot of money between all the people who are owed money.
The tax man will get what he is owed first and then the bank. Generally after that, if there is any left it is apportioned between the rest of the creditors - after the administrators have paid themselves - of course.
So, I would guess you are paid your salary in arrears. It is probable that you may not get all that i owed to you.
It is possible that someone or some other company may buy your company and thay are legally obliged to keep your contract. If I were you though I would be looking for another job |
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oohbetty
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Yes its not good news I'm afraid. Start looking for another job now. The company is in financial difficulty and the administrators come in to sort out the paperwork and arrange to pay back their clients what they can before it goes into liquidation. (or something like that!). It's likely that everyone will be made redundant but don't quote me on that. I'm sure you will all be called in for a meeting soon. Why not just ask your boss? |
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dels replies
|
The company is in financial trouble. Administrators are engaged to run the company temporarily while they try to sell the firm as a going concern and to get as much money for the creditors as they can.. If they are able to sell the firm there is a chance the employees might still have jobs with the new owners. If a buyer can't be found the company will be liquidated, all staff made redundant and the assets sold. |
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dozyllama
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The administrators usually work for the official receiver who deals with companies what are going bankrupt due to cash flow problems. It does not necessarily mean the end of your employment as these administrators will try to get the company back on track first. If they cannot resolve the cash flow crisis which has got them there in the first place then the company will be declared bankrupt and sometimes will cease to trade. In a lot of cases a new company will start with the same people running it and most employees do not realise what a close shave they have had with their jobs! |
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firebobby
 |
The administrators will try and keep the company running as a viable concern. They will have been appointed by the bank, to whom the company owe money, and they want to try and preserve their investment.
The adminstrators will run the company on a day to day basis keeping control on the financial comings and goings.
Hopefully they will turn the business round and return it to a solvent venture,sadly this does not always happen , and they will shut the place and sell off the assets to regain their investment. |
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Cynical Girl
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If the administrators are called in they will be looking for a way to rescue the company first - whether by a management buy-out or selling it as a going concern to another company. This does not always work. If the company is large enough then they will look at whether they can sell off parts of the company to raise money to pay off the debts, etc. that have got the company into the trouble in the first place. Worst case scenario is that they end up selling it off piece by piece - i.e. the equipment, the buildings, etc.
I haven't been in the situation of working for a company who went into administration, but I have worked for a company who bought one that did. That company kept on 75% of the staff and the redundancies were reasonable packages and all voluntary. I have to say though, that this is more an exception than a rule.
On a good side, I was once made redundant and had to take a temporary job, which turned into a permanent one, which ended up with me completely changing career and now having one which is far better paid and I have more qualifications than I ever thought possible, so that redundancy was the best thing that ever happened to me, even though it seemed like the worst at the time. |
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