Kwik Save said it had secured a court adjournment to an application for an
administration order to give directors more time to agree a re-financing package aimed at securing the future of the business.
The 56.3 per cent annual rise in
administration orders follows the implementation of the Enterprise Act 2003 which gives additional breathing space for companies in financial difficulties.
Administration orders are also on the increase ( up 22.9% during the second quarter of 2006 and up 37.8% in the first six months of the year, compared with the same time in 2005.
It was thought that this would be in the interests of creditors and could save many jobs which may be at risk if the
administration orders were not made and the group was placed in liquidation.
The areas most hit by
administration orders were London (up 243%), Scotland (up 88%) and Wales (up 83%) during 2006.
Otherwise, increases were across the board: voluntary liquidations (up 1.5 per cent), compulsory liquidations (up 14.5 per cent), receiverships (up 5.2 per cent) and
administration orders (37.8 per cent).
Voluntary liquidations increased by 3.9% over the same period,
administration orders by 55%, compulsory liquidations by 26.5% and receiverships by 9.7%.
The regions, with the highest number of
administration orders were the South-east with 40 per cent, the Midlands with 18 per cent and the North East with 17 per cent.
Administration orders have increased by 82 per cent over the same three-month period against 2003 and by 94 per cent over the period in 2002.
In the first quarter of 2002, there were 168
administration orders; this increased to 179 in 2003 and 326 in 2004.
In comparison,
administration orders were up 11% and voluntary arrangements were up 9%.
'However, while the Government will not welcome the rise in insolvencies they should be pleased about the increased use of
Administration Orders as the Enterprise Bill aims to make this the favoured rescue procedure.'
