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What is pre-pack administration good for?

What is pre-pack administration good for?


An administration procedure effectively stops an out of control train in its tracks.

A pre-pack administration helps the train continue on its journey smoothly without having to stop.


Administration can be used to:

  • Avoid the compulsory winding up / liquidation of a company and cessation of trade. 
  • Maximise realisations
  • Rescue part or whole of the business, including protecting employee jobs.


In addition to the above, the benefits of a pre-pack administration:

  • Helps retain the maximum goodwill before the administration takes place and becomes public.
  • Saves on potential substantial costs that could be incurred during the normal administration where the administrators usually trade a business post appointment in order to sell part or the whole of a business on a going concern basis.
  • The business can be transferred almost seamlessly ensuring a continuity of trade.
  • It helps to preserve customer and employee confidence.
  • It can be very effective for a business whose value is mainly in its goodwill e.g. a legal practice, advertising agency or high tech businesses.
  • A pre-pack can happen very, very quickly.



David Kirk ACA FABRP

David Kirk

David Kirk is a Chartered Accountant and Licensed Insolvency Practitioner.
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“At the initial meeting you told us the good and bad things that can happen and were honest and told us to watch out for. No one else had done that.”
J White
Business Recovery
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Lynne Firman of Just Beds Ltd
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R Johns
Business Rescue
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Chris Pratt of Elecsis Ltd
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