Venturn Pre Packs

Venturn Pre Packs.

If your business needs a pre-pack, we can put one in place.

Pre-packs are an alternative form of Administration or Liquidation of a company where a sale to a new legal structure takes place immediately upon the Administration of the old company. It is usually preferable to avoid any form of insolvency, but when it becomes inevitable, a pre-packaged administration or "pre-pack" can be used to hold the company, it’s contracts and it’s employees together, thus giving a measure of operational stability when the legal structure is about to collapse.

Pre-packs have a number of advantages over a company entering and then trading in administration.

  • Pre-packs keep the operational side of the business together – customer services are not disrupted
  • Pre-packs save jobs and employees are not made redundant – their rights are usually protected under TUPE regulations
  • Pre-packs allow the firm to keep trading with little to no business interruption
  • Pre-packs provide a better return to creditors - Funds returned to secured creditors are higher at 42% compared with 28% for administration business sales (source R3 press briefing January 2009)

The damage that results from administration or liquidation is often avoided through a pre-pack.
The ideal type of firm for a pre-pack is a service provider where the assets are its staff and intellectual property or know-how. Retailers, software developers and digital marketing agencies are typical examples of such firms that are ideal candidates for a pre-pack if the company is in difficulty.

"Through a pre-pack administration, we can preserve the business itself, while allowing the legal entity only to fail."

Through a pre-pack administration it can become debt-free, continue to trade, and then go on to future growth and success. Pre-packs can therefore help prevent an economic downturn from worsening, as skilled people are kept in work and companies can keep going.

Whatever the situation, speed of action is of crucial importance, otherwise various courses of action become closed off as time passes. If you would like to talk to an expert, please contact us today.