A voluntary administration is an appropriate option for a business that is insolvent (or is likely to become insolvent) and would like to try to restructure or settle its debts whilst continuing to trade. A voluntary administration may also provide directors with an opportunity to put forward a proposal to the company’s unsecured creditors to settle the debts for less than the original amount.
The appointed administrator (who must be a licensed insolvency practitioner) will take control of the business whilst the future of the company is carefully mapped out. Many successful company restructures have been achieved through a voluntary administration, however many businesses, like Australian children’s clothing label Rhubarb Enterprises, may make the decision to cease trading after voluntary administration.
After facing a rough financial battle for the last 12 months, the Melbourne clothing brand, as well as related companies, entered into voluntary administration in March 2015. This saw the closure of their six Rhubarb stores across Melbourne, Sydney and Brisbane.
If your business’ finances have seen better days, seek professional financial assistance before it is too late. As specialists in all corporate insolvency matters, we possess the knowledge, experience and expertise to assist you with your voluntary administration case.
So give CRS Insolvency Services a call today on 1800 210 073. We operate a toll-free 24/7 hotline and are available to provide you with impartial advice at any time that suits you.