E&Y names and shames 'failures'
Ernst & Young may be breaking new ground by advertising the fact that a business is going through an administrative receivership on the company's own website.
Link: Video game company is not all the Rage
The Big Four firm, which is currently receiver to Rage Software, put up a sign on the website while it was operational saying it was going through the process. E&Y administrator Alan Bloom did the same to Railtrack’s site when it was in administration.
A spokeswoman for E&Y explained that as Rage shareholders can access the site and it is used as a marketing tool, the administrators thought it was best practice to show the position of the company.
She added: ‘It is something we are doing more and more.’
However, this is not standard practice among insolvency practitioners.
None of the websites of recent high-profile insolvencies, including the Marquee, York City or Port Vale, say the companies are in administration.
Carl Faulds, council member of the Insolvency Practitioners Association said that due to developments, the regulator would be bringing the topic up in its future discussions. ‘In principle this practice should be considered,’ he said.
David Buchler, president of R3, said: ‘It is good business practice.
‘We would like to see it done more. If other people are not following it, they should. The whole purpose is that people are aware of the position the company is in.’