New DTI rules rescue fashion house
Fashion company Jeffrey Rogers has found a buyer in record time thanks to the new Department of Trade and Industry rules on insolvency.
‘The Insolvency Act 2000 has been an excellent boost for us in dealing with the administration,’ said company administrator Maurice Moses, business recovery partner at Levy Gee.
The new provisions of the act are coming into force in stages during the year, as Patricia Hewitt takes over at the DTI. In March, rules that came into force stated landlords had to go through the courts before removing tenants and the contents of the store from the premises.
Moses explained these provisions landlords on a level playing field with other creditors, who had to go through the courts before getting money they owed. ‘It protects the business from landlords wanting to close down a shop because of unpaid rights.
‘This administration is proof that the act is working,’ he said.
Jeffrey Rogers went into administration on May 18 after suffering irrevocable financial losses and has 60 stores employing 600 people.
Hewitt’s appointment as trade and industry secretary has raised hopes that her previous work with the government’s Small Business Council will mean a greater focus on SMEs from the DTI.
Links