BusinessBusiness RecoveryPre Packs Come in for more Criticism, despite burger bar rescue.

Pre Packs Come in for more Criticism, despite burger bar rescue.

Tootsies, the burger restaurant chain, appears to have got itself into a financial pickle, and has, as a result, been sold to Giraffe Concepts in yet another pre pack administration deal.
As usual, the headline benefit from the deal is that jobs have been saved (in this case 278), but that won’t stop the ongoing complaints about the growing popularity of the pre pack. Unsecured trade creditors have been particularly vocal in their criticism of the “behind closed doors” nature of the pre pack rescue.
Even more interesting then to see that PWC’s Turnaround Director Panel has recently stated in a report that pre packs may be “morally questionable” and “unacceptable”.
The trouble is, how can they be stopped? By all accounts, the trouble with traditional “open” administrations in this current economic climate is that the breathing space companies need to continue trading while in administration (from banks, trade suppliers etc) is too difficult to secure. What PWC is saying is that the tide can not be turned away from the pre pack rescue of ailing concerns, but that wise heads in the IP profession should come up with better ways to make the process more transparent, so that trade creditors don’t feel so hard done by.

Related Articles

Martin Williams

Business Recovery Martin Williams

7y Accountancy Age, Reporters
Time to Act against slow payers

Business Recovery Time to Act against slow payers

7y Martin Williams
Cash-struck consumers dent recovery hopes

Business Recovery Cash-struck consumers dent recovery hopes

7y Martin Williams
Sort out the credit sloths

Business Recovery Sort out the credit sloths

7y Martin Williams
Window dressing won't save Britain's high streets

Business Recovery Window dressing won't save Britain's high streets

7y Martin Williams
EU ding dong over accounts filing Exemption

Accounting Standards EU ding dong over accounts filing Exemption

7y Martin Williams
Insolvency stats are head-scratchingly strange

Business Recovery Insolvency stats are head-scratchingly strange

7y Martin Williams
Authorities wake up to £38bn robbery

Business Recovery Authorities wake up to £38bn robbery

7y Martin Williams