— Licensed · Free Assessment · Same-Day Advice
Immediate Protection.
A Structured Path to Recovery.
When a business is under severe creditor pressure — facing a winding up petition, enforcement action, or the prospect of a compulsory winding up order — company administration provides immediate legal protection while a recovery or sale strategy is put in place.
From the moment an administrator is appointed, all legal action by creditors is stayed. No enforcement. No asset seizure. No winding up. Administration gives a business the breathing room it urgently needs, and gives its directors — and the appointed practitioners — time to explore every available option.
Business Guardian's licensed practitioners advise directors on whether administration is appropriate for their situation, and manage the entire process from appointment to resolution.
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— what is company administration
What Is Company
Administration?
Company administration is a formal insolvency procedure in which a licensed Insolvency practitioner — the administrator — takes control of a company's affairs. The administrator's role is to act in the interests of creditors as a whole, but the procedure is structured to give the business its best possible chance of survival.
Under the Insolvency Act 1986 and the Enterprise Act 2002, the administrator has three statutory objectives, pursued in priority order:
Rescue the company as a going concern
Achieve a better outcome for creditors than would be achieved on immediate liquidation
Realise assets for the benefit of one or more secured or preferential creditors
In practice, the administrator assesses the business rapidly after appointment and determines which of these objectives is achievable. Where rescue of the whole company is not possible, a sale of the viable parts — through a pre-pack or trading administration — often preserves jobs and value that liquidation would destroy.
— legally protected
The Moratorium –
Automatic Legal Protection.
One of the most significant features of company administration is the automatic moratorium that applies from the moment of appointment. During administration, no creditor can:
Present or pursue a winding up petition against the company
Commence or continue legal proceedings without the administrator's consent or court permission
Enforce security over the company's property
Repossess goods in the company's possession under hire purchase agreements
Exercise a right of forfeiture against the company's premises
For a company facing immediate enforcement action, the moratorium alone can be the critical factor that preserves the business long enough for a proper assessment and rescue strategy to be implemented.
— Administration
How We Use Administration
at Business Guardian.
01
Rescue and Recovery
Where a company has a viable underlying business — trading well, with genuine customers and prospects — administration gives the administrator time to negotiate with creditors, stabilise operations, and agree a rescue plan. In some cases, this leads to a Company Voluntary Arrangement being proposed. In others, the company emerges from administration with its debts restructured and trading restored.
02
Pre-Pack Administration
A pre-pack administration involves agreeing a sale of the company's business and assets before the administrator is appointed, with the sale completing immediately on appointment. It is the most common use of administration for UK SMEs and allows the business to continue trading without interruption, preserving jobs, contracts, and customer relationships. A separate page on this website covers pre-packs in full.
03
Trading Administration
Where a pre-pack is not appropriate — either because a buyer needs to be found, or because the assets require time to realise — the administrator may trade the business for a period before completing a sale. Trading administrations require careful management and close coordination with staff, suppliers, and customers.
04
Creditor Outcome Focus
Where rescue of the business or a sale is not achievable, the administrator realises the company's assets for the benefit of creditors in the statutory priority order. While this outcome does not preserve the business, it is managed and compliant — unlike a disorderly collapse or a compulsory liquidation, which typically returns less to creditors and exposes directors to greater personal scrutiny.
— why Business Guardian
Is Administration
Right for My Company?
Administration is most commonly the right choice where one or more of the following apply:
A winding up petition has been filed, or is threatened, and the business needs immediate legal protection
The company is insolvent but has a viable underlying business that could survive under new management or through a debt restructuring
There are significant assets that would be better realised through a managed process than a forced sale
The directors believe a pre-pack sale is the best available outcome and want to proceed correctly under SIP 16 guidelines
A rescue via CVA has failed or is not viable, but the business could still be sold as a going concern
Administration is not the right route for every insolvent company. Where the business has no viable future and there are limited assets, a creditors' voluntary liquidation is typically more appropriate, quicker, and less expensive. We advise honestly on which procedure fits the specific situation.
— Common Question
Frequently Asked
Questions
How quickly can an administrator be appointed?
An administrator can be appointed very rapidly — often within 24 to 48 hours of the decision being made — using the out-of-court appointment route available to the company or its directors. In urgent cases involving an imminent winding up hearing, we have achieved appointment in a matter of hours. Speed matters enormously in administration and we treat every administration enquiry as time-critical.
What happens to staff when a company enters administration?
Employees continue in their roles during administration unless the administrator decides to make redundancies. If redundancies are necessary, employees are entitled to claim statutory redundancy pay, notice pay, and other arrears from the Redundancy Payments Service. Staff are informed of the administration as soon as practicable after appointment.
Can directors still run the company during administration?
Once an administrator is appointed, the directors' powers to manage the company are suspended. The administrator takes control. Directors have an obligation to cooperate with the administrator and to provide information as required. They cannot take any management action without the administrator's consent.
How long does administration last?
Administration automatically ends after twelve months, but can be extended by court order or creditor consent where necessary. In practice, most administrations resolve considerably faster — pre-pack administrations often conclude within days of appointment, and trading administrations typically run for two to six months before a sale is completed.
What are the costs of administration?
Administration costs depend on the complexity of the case, the duration of the procedure, and the level of trading required. The administrator's fees are paid from the company's assets in the prescribed order of priority. We provide a clear cost estimate before any appointment is made. In many cases, the value preserved through administration significantly outweighs the cost.
—work with us—
Your Business Deserves
Expert Protection.
Don’t wait until options run out. Early action almost always leads to a
better outcome — whether that means rescuing your business or closing
it correctly.