Bridge collapsed under weight of significant irregularities
KPMG administrators issue statement shedding light on why insolvency firm failed
SIGNIFICANT IRREGULARITIES at insolvency firm Bridge Business Recovery led to its collapse, a statement from its administrators at KPMG said.
Colin Haig and Samantha Bewick, partners at KPMG, were appointed administrators to the firm earlier this week.
“The partners of the business sought the advice of KPMG on discovery of significant irregularities, which subsequently led to the court appointing KPMG as administrators,” the statement said.
A source close to the case said the partners’ attempted to acquire the firm through a pre-pack administration, where a sale is organised before entering an insolvency process and sold immediately after.
The source added that the pre-pack had the backing of independent restructuring professionals and its largest creditor.
However, the court denied the pre-pack last week and KPMG was appointed.
Colin Haig, joint administrator and restructuring partner at KPMG, added: “Unfortunately, the administration has been triggered by unforeseen and very difficult circumstances. The focus for the administrators will now be on seeking a sale of the business.”
Rob Horton, partner at Bridge Business Recovery, said: “James Bradney, partner at Bridge Business Recovery, has now left the business. The remaining partners are now working closely with the joint administrators.”
Update:
Solicitor firm Peters & Peters have confirmed they are “acting on behalf of James Bradney”.
