A court ruling today will have major implications on the availability of
funds for administrators handling multi-site businesses, such as insolvent
The High Court has ruled in favour of Exeter City Council in the Trident
Fashions case, deciding that business rates must be paid by administrators as an
expense of the insolvency, ahead of administrators’ remuneration.
Administrators usually hold off paying business rates for multi-site
insolvent businesses, however the courts have decided that business rates must
now be paid.
Carolyn Swain, a partner at law firm Halliwells, said the decision was
‘significant’, and administrators could be forced to pay back millions of pounds
from their own fees to cover previously unpaid business rates.
‘There could be more liquidations because of this decision, business may try
to get rid of leasehold sites prior to administration, and the decision has
opened up enormous liabilities that administrators may not have provided for,’
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies