Transfer of existing buisness prior to administration

Transfer of existing buisness prior to...

Didn't find your answer?

We have a small business client with an old established business that has been hit badly by the recession and can no longer meet it's commitments , the Directors also have another company of a similar name ie Company 1 - XYZ Ltd and Company 2  - XYZ Maintenance Ltd , Company 2 has been traded for over a year. Can we transfer staff and suppliers over to Company 2 prior to Company 1 Administration or should we appoint an administrator and then transfer staff - we are trying to retain the loyalty of the existing customers. To complicate matters the Trading name of company 1 XYZ is held as a trademark by Company 2 and the use of the same franchised to Company 1 - so we do  not think use of the same name XYZ by Company 2 is an issue. We simply wish to advise on a Legal transfer so we and the Directors do not get into a mess !  Any comments would be appreciated.

Replies (1)

Please login or register to join the discussion.

avatar
By neileg
22nd Mar 2013 13:59

You need to see an IP

This sounds like a pre-pack would be the ideal solution. This is where a sale to a newco is agreed prior to the appointment of the administrator and the first action of the administrator is to effect the sale. Frowned on by some but a pragmatic way of saving a viable business and protecting jobs. You need to see an insolvency practitioner.

Thanks (0)