Wasps, the well known Coventry based rugby club, have filed the intention to appoint administrators with the high court. So, is that the end of the line for the team and its supporters?
jump to content

Intent to file administration by rugby club Wasps - What does it all mean?Posted: Sep 23, 2022

What does ‘intent to appoint administrators’ mean?

If you have been keeping up with the news recently you probably saw that Wasps filed notice with the high court that they intended to appoint administrators. So, what does that actually mean?

As the name suggests, this is a document saying that they intend to appoint an Administrator. Normally this is because notice must be given to certain creditors.

An Administrator, who must be a licensed Insolvency Practitioner, can be appointed to run a company and take control of the assets in an attempt to stop the company from being wound up (forced to close) by its creditors. If they feel the company can be rescued and return to a position where it is able to trade and become solvent, then they will set about arranging for that to happen. Or alternatively, the assets of the business may be sold to another party. If they can’t then they will ensure that the company’s assets are fairly distributed amongst the creditors. In either case, the Insolvency Practitioner that is acting as Administrator has 8 weeks to produce a report detailing their intended actions. 

This all sounds rather dramatic and, in financial terms, it rather is. The club has clearly had some financial problems, and judging from the reports, it seems to be acting in response to a threat of a winding up order from HMRC. When a winding up order is issued and advertised, the bank will normally freeze the account of the affected company. No bank account really means no trading. So, while intent to appoint administrators isn’t the last straw, it is also not exactly a good sign.

In this case, the reason Wasps have filed with the high court is likely to get a breathing space in which to assess, regroup and find a way to move forward. Once the intent to file for administration is issued it effectively stops any further action being taken by creditors and will also freeze any progression of current action. This creates a valuable breathing space so the company and its advisors can negotiate with creditors to come up with a solution and a plan for the business.

 

What now?

If an administration order is issued it will usually result in one of three things

  1. A significant part or all of the business will be sold to potentially raise capital
  2. The assets will be realised (sold) in a way that will benefit the creditors more than would occur if this was part of a liquidation
  3. An Administrator could be appointed on behalf of a charge holder(s)

It should be noted that a suitable Insolvency Practitioner will already be assisting the director and Company in order to try to find the best resolution. Hopefully, for the club and the fans, this will mean the rugby will continue. Without further information though it is difficult to see the extent of the debts and whether it is still a viable business proposition.

 

What can we take from the situation with Wasps?

The fact that a major club like Wasps can be in danger of liquidation may well be a signpost for more to come. The has already been a similar financial crisis at the Worcester Warriors so let’s hope this is not a pattern emerging.

That said we do need to face facts. As I am writing only hours after the Bank of England raised interest rates to the highest in over a decade and they are forecasting a recession in Q4. That is going to hit some businesses hard.

HMRC, as we can see from the report about WASPS, is actively pursuing debt again. Wasps have entered into discussions with them in the past and clearly, they at least made some headway. We have been used to the gentler approach throughout the recession though and it seems this is now not such a priority for the Revenue service. So while HMRC is still very accommodating and understanding, they will want paying. If you owe money to them, try to arrange a payment plan, or at least speak to them. If you think that you are not able to pay them at all then it is probably best to book an appointment with us to talk about your position. 

Wasps and Warriors may be the high profile pilot fish warning of a tough time ahead. We all hope not, and the government is moving to hopefully stave off some of the crisis, but we all need to be ready just in case the worst comes. Be optimistic but be realistic and be prepared for hard times.

There is a fine line between optimistic and burying your head in the sand though. Allowing the hope that things will improve to cloud your view of a real problem is a dangerous path. If you are struggling financially, you must act. Speak to us, speak to your accountant, but under no circumstances ignore the situation if things are looking bad.

Back

transparent gif
The JSL Notice is usually a rather rare beast for HMRC to use, because it is a somewhat complex and difficult action to take. However, HMRC now seem to be increasingly more inclined to utilise them,

JSL Notices - Are HMRC becoming more aggressive when it comes to Tax avoidance and Evasion?

There was a relatively large rise in the number of Joint and Several Liability (JSL) Notices in the last year. ... more

According to recent data from the Insolvency Service, the construction sector remains one of the industry areas most likely to struggle with insolvency.

Insolvencies Rise in the Building Sector – Are the Foundations Crumbling?

According to recent data from the Insolvency Service, the construction sector remains one of the industry areas ... more

According to Charity Debt Justice, around 6.7 million people in the UK are considered to be in financial difficulties. The Debt Relief Order is one way to deal with this problem and how it works it is about to change.

UPDATED - The Debt Relief Order (DRO) rules are changing – Better or Worse for Those in Debt?

According to Charity Debt Justice, around 6.7 million people in the UK are considered to be in financial ... more

In the run-up to the election, the current government made some very clear promises that could have quite an effect on your business finances. Now the initial transition fuss has died down, what could it all mean financially for your business?

Zero hours to day 1 – Should your business be planning for changes to the law?

In the run-up to the election, the current government made some very clear promises that could have quite an effect ... more

There is always bound to be a question about when it is the right time to push the button on a member's Voluntary Liquidation (MVL). With a budget being announced for October, right now may well be a good time to take a serious look at your options if you are considering an MVL.

Members Voluntary Liquidations – A tax target in October?

There is always bound to be a question about when it is the right time to push the button on a member's Voluntary ... more

When you are responsible for a business that is facing insolvency, or potentially facing personal financial issues that could mean bankruptcy, you need to take action. The first action to take is to contact someone who can help. Often that will be an Insolvency Practitioner (IP).

Choosing an Insolvency Practitioner – The Human Touch

When you are responsible for a business that is facing insolvency, or potentially facing personal financial issues ... more

Here we go again. The election is ramping up and the media are dissecting every statement and promise in search of a great headline. Behind all that though, both main parties have made several promises in manifestos and statements about how they will help business if they have someone in Downing Street. As we have said many times, politics isn’t our business… but business is. So, let’s take a quick, impartial, look at what both parties have said and what it could potentially mean for businesses going forward.

Election 2024 and Business – What is on the Table from Both Main Parties

Here we go again. The election is ramping up and the media are dissecting every statement and promise in search of ... more

As we often say, HMRC can be a ‘quiet creditor’ because they don’t shout as loud or seem as urgent as other, more immediate bills. However, they are persistent and will eventually lose patience and enforce collection. The repercussions for underestimating how dedicated HMRC are to collecting monies owed to them for VAT and Corporation Tax can be life changing, as Ex-Footballer, John Barnes, recently found out. /help-home

John Barnes Media Limited insolvency – A reminder that HMRC do not take non-payment lightly

What happened between John Barnes Media Limited and HMRC? According to the Insolvency Service news, John Barnes ... more

You will probably know that that one of the actions taken during an insolvency is for the company assets to be sold to help pay debts. This is always the case, but what constitutes an asset is sometimes a little more complex.

Fixtures and fittings and all the stock - What exactly is an ‘asset’ during insolvency?

One of the actions taken during an insolvency is for the company assets to be sold to help pay debts. This is ... more

The politics of a budget are not really in our area of interest, to be honest. The motivations behind decisions made in Westminster seem considerably less important than dealing with the day-to-day practicalities of what those decisions mean to business. Let’s leave the speculation about ‘why’ to the press and look at what there was in the budget that will, or won't, have an impact on your business.

Budget 2024 – Spring in the air or a wet summer ahead?

The politics of a budget are not really in our area of interest, to be honest. The motivations behind decisions ... more

There have been a couple of dramatic looking statistics about company closures and recessive economies recently. While it isn’t a good idea to dismiss their importance, it is worth putting them into perspective.

Closures and recessions – Are things that bad when you look behind the numbers?

There have been a couple of dramatic looking statistics about company closures and recessive economies recently. ... more

HMRC have issued an update to how Members Voluntary Liquidations (MVLs) are processed. The change is quite a shift in the administration of MVLs, so it’s worth taking a moment to look at it and what it will mean.

Changes to the Members Voluntary Liquidation process – what do they mean?

HMRC have issued an update to how Members Voluntary Liquidations (MVLs) are processed. The change is quite a shift ... more

According to the Office of National Statistics (ONS), retail sales fell 3.2% in December 2023. With a harsh outlook on the cards, what can retailers do to ease the financial problems they could be facing this spring?

Not so merrily on the High Street – How retailers can respond to a low sales Christmas

According to the Office of National Statistics (ONS), retail sales fell 3.2% in December 2023. With a harsh outlook ... more

Christmas is around the corner, and the last bell is about to ring for 2023, so it’s a good time to sit back and look at what the year meant to business and insolvency.

Looking back on 2023 – A year of challenge for UK business

Christmas is around the corner, and the last bell is about to ring for 2023, so it’s a good time to sit back ... more

We are all aware that a business can become insolvent but what about the over 168,000 charities currently registered in the UK, can they become insolvent?

Well-meaning sometimes isn’t enough – Insolvency and charities.

We are all aware that a business can become insolvent - but what about the over 168,000 charities currently ... more

This year the Autumn statement was a bit of a mixed bag for business and individuals. National insurance giveaways and minimum wage rises dominated the news but, looking at the bigger picture, is it a win or a loss for business?

The Chancellors autumn statement – hint of spring or cold winter ahead?

This year the Autumn statement was a bit of a mixed bag for business and individuals. National insurance giveaways ... more

A stagnant economy in the third quarter, increases in company insolvencies, rising fuel and utilities costs and many other factors are all pointing to a difficult business year ahead. Let’s not forget though, that we could be also looking at some harder times for personal finances as well.

2024 – does a financially difficult year for you mean a tough year for business?

Do personal finances impact business finances? When you run a business, one of the first things any of your ... more

The jump in insolvencies in September follows a similar increase in August. However, there was a drop in July. So is this a blip or a precedent that we should be concerned about?

The increase in insolvencies – What is of root cause of the jump in numbers?

The jump in insolvencies in September follows a similar increase in August. However, there was a drop in July. So ... more

Bankruptcy and insolvency are not the same thing, but they are closely related. Maybe that is why they are sometimes used interchangeably in the public domain. While this is understandable, it’s very important to know the difference between them.

Birmingham is not bankrupt – Understanding bankruptcy and insolvency.

Bankruptcy and insolvency are not the same thing, but they are closely related. Maybe that is why they are ... more

Much like the current summer weather, the outlook for the economy is not great. So, what should businesses be doing right now to stave off some of the effects of the economic instability?

Weather forecasting - Strategies for business in UK's Challenging Economy

Economic sunshine and showers. We have gotten used to having a more Mediterranean style summer in the last few ... more

It often still comes as a surprise to directors when they learn that they can claim redundancy. However, the process has recently been updated so the answer to the question ‘Can I claim redundancy if I am a company director’ is not quite as simple as it used to be.

Claiming redundancy for directors - Important changes to the process

It often still comes as a surprise to directors when they learn that they can claim redundancy. If you meet the ... more

As insolvency practitioners (IP) a lot of the work we do is rooted in procedure, experience, and good practice, but recent comments by a client about ‘wanting a local IP’ made me wonder why that was such a big deciding factor for them.

Knowing the cobbles – Is it better for your Insolvency practitioner to have local knowledge?

Does being local matter? After all, insolvency is about logic and process, isn’t it? To answer that ... more

We have been informed by the Insolvency Service that an email from a fake email address, 'info@theinsolvencyservice.co.uk' claiming to be Chris Pleass (Director) and possibly intended to build up to an attempt to defraud the agency, has been circulating.

Warning: Insolvency Service impersonation

              Warning: Insolvency Service ... more

The recent budget may well have not been much of a shake up for the economy but it did contain some things to need to be considered by businesses in the coming months.

Very few surprises and a few worries – Some thoughts for business about the Spring budget 2023

The recent budget may well have not been much of a shake up for the economy but it did contain some things to need ... more

You have probably seen news articles recently about Directors being disqualified over Bounce Back loans so if you have a company that is insolvent, do you need to worry?

Getting jumpy about bounce backs – Is a bounce back loan going to get you disqualified as a director?

Can I be disqualified as a director over a Bounce Back Loan? Let’s deal with the big questions first. In ... more

To be frank, it came as no surprise that the treasury recently changed the rules surrounding Capital Gains Tax. In fact, we were really surprised it didn’t happen sooner because it seemed an obvious way to raise funds and, in fairness, it had remained untouched for some time. When the change did come it was still quite a light touch but even so, anyone considering closing their solvent company through a member's voluntary liquidation has a decision to make and it needs to be made quickly.

No surprise but it still stings – Now is a good time to think about Members Voluntary Liquidation

What happened with Capital Gains Tax and MVLs? To be clear from the outset if you are thinking of closing your ... more

Normally in early January, it is time to look forward to the year to come. However, after such an unusual year, it’s probably worth taking a moment to reflect on what happened and what it could mean for business. https://www.smartbusinessrecovery.co.uk/news/50/137/More-than-knowledge-What-to-look-for-in-an-Insolvency-Practitioner

Frantically paddling against fast water or going with the tide? - Looking back on 2022

A year of financial white water 2022 started with a lot of hope, didn’t it? By the end of January Covid ... more

As if the hospitality sector hasn’t suffered enough through covid and lockdowns, it is currently experiencing even more financial pressure. Sadly, according to a recent survey, it looks like insolvencies for pubs and restaurants are going to continue to be an issue into the coming year.

Less than Festive – Sharp increases in hospitality insolvencies pre-Christmas

What’s going on in Hospitality? You cannot help but feel for pubs, restaurants, and other venues. It must ... more

It isn’t unusual that a director of a company will have an outstanding director’s loan account. If that company then goes into an insolvency process, then the loan becomes an amount outstanding to the business and the insolvency practitioner is required to pursue these. Depending on the circumstances these are sometimes partially written off due to the director's personal circumstances. Under new guidelines from HMRC though, there could be a nasty surprise for the director coming

A tax to be paid – Changes to the way HMRC view writing off a director’s loan account during insolvency.

It isn’t unusual that a director of a company will have an outstanding director’s loan account. If that ... more

When you need the help of an Insolvency Practitioner for any of the services they offer, you are at the beginning of a journey that requires mutual trust and understanding. It’s important that you choose someone who you can work with whether you are looking at potential insolvency, personal bankruptcy, solvent liquidation, or any of their services.

More than knowledge – What to look for in an Insolvency Practitioner

What makes a good Insolvency Practitioner? There are some fundamental skills and experience that should really ... more

Wasps, the well known Coventry based rugby club, have filed the intention to appoint administrators with the high court. So, is that the end of the line for the team and its supporters?

Intent to file administration by rugby club Wasps - What does it all mean?

What does ‘intent to appoint administrators’ mean? If you have been keeping up with the news ... more

All businesses have the occasional difficult time when it comes to finances. The important thing for directors is to recognise when that 'rough period' is starting to become something much more serious.

Is your business going through a bad patch or insolvent? – Red light and green lights

Green, amber, and red lights of insolvency If we were to make a list of things that directors usually tell us ... more

There is a lot of doom-laden talk on the news at the moment. While things may not be as economically rosy as they have been in recent years, are they really as bad as they sound for you and your businesses?

The voices of doom – Don’t panic, things may not be as bad for business as they sound.

How bad are things for business? You can’t help but notice that the economic news is pretty grim at the ... more

Personal guarantees can be a problem when a business becomes insolvent, and directors are often concerned about their liability. When businesses are in the start-up phase or looking to expand and grow, it isn’t uncommon for directors to sign off on a personal guarantee. While this may not be unusual it’s important to know what that could mean later.

Personal guarantees – Where do you stand and what do they mean to your finances?

Personal guarantees can be a problem when a business becomes insolvent, and directors are often concerned about ... more

You can’t help but notice that the economy is not exactly rosy. Inflation is rising rapidly, and costs are going through the roof. So why are we not hearing about huge numbers of insolvency cases?

If the economy is so bad, why aren’t we seeing a flood of insolvencies?

What happened to the insolvency crisis? Back in what now feels like aeons ago during 2021, there were rumblings ... more

If you run a business, you will be more than aware of the rising background costs. You will also be facing increases in your personal finances. Without a doubt, now is the time to maximise your resilience.

Resilience and down to earth assessment – Dealing with the rise in business costs

The cost of business crisis. Without knowing your expenditure, it is almost impossible to make a sound judgement ... more

Boris Becker recently failed to reveal his full financial situation during his bankruptcy process resulting in a prison sentence for the ex-champion. Why is full disclosure of assets so important in personal bankruptcy and business insolvency?  

Full disclosure matters when it comes to debts, bankruptcy, and insolvency.

The importance of honesty. There is nothing the press likes more than a celebrity scandal and former Wimbledon ... more

When they were launched, the Bounce Back Loans were a unique event. No security needed, no personal guarantees and just a handful of rules. Now, as the pandemic dust finally settles, some Directors are concerned about whether the BBL will turn out to be more a curse than a blessing if they are facing insolvency.

BBL anxiety - Should you be worried about Bounce Back Loan consequences?

You have probably seen various stories in the press about Directors of businesses being caught out because they ... more

One of the responsibilities of an insolvency practitioner is helping people through the solvent liquidation process or Members Voluntary Liquidation (MVL). It is a big decision and timing can be a big factor. So, is now the right time to consider it?

Time for a change? If you are considering solvent liquidation, now may be the time.

Why do people consider a Members Voluntary Liquidation? Unlike insolvency, which is driven purely by financial ... more

There were various techniques employed by the government to stave off the effects of the pandemic on business. Some were beneficial in the long run, others, such as the bounce back loans, are having serious repercussions for businesses that have not ‘bounced back’ as much as they hoped. Nearly all the measures aimed at temporarily offering a stay of action against insolvency have now been lifted but what does that mean for businesses?

All things come to an end – The end of temporary insolvency measures.

When the insolvency legislation was temporarily changed during the pandemic, I suspect there was a widespread sigh ... more

As we emerge from the storm clouds of the pandemic, for what is hopefully the last time, it’s worth standing back and taking a good look at how your business will adjust. There is a lot to consider because the Covid pandemic and the accompanying financial situation has created one of the most unusual business environments ever seen in the UK. In an amongst the workload and relief of getting back to some sort of normal (again!) we suggest you take the time to assess your trading situation, not from the usual angle of cashflow or forecasting, but in the light of a post-pandemic marketplace.

Once more around? – Things to think about coming out of the pandemic.

I heard a wonderful phrase to describe the current situation the other day. Someone said they would be glad when ... more

Cashflow should always be important to any business, but as we go into an unsettled economy for 2022, it is even more important than ever.

Riding the roller coaster - why cashflow should now be at the top of your priority list

If you run a business and don’t currently have cashflow planning at the top of your agenda, you probably ... more

Yes, for those of you that watched ‘Game of Thrones’ you will appreciate that this is the threat of bad things happening. We have heard similar phrases being used in the press, such as ‘Winter of discontent, ‘Shortages’ and stories of empty shelves.

Winter is Coming!

Yes, for those of you that watched ‘Game of Thrones’ you will appreciate that this is the threat of bad ... more

Having spent 30 years working with Companies in trouble we have seen this in the past, for example after the 2008 banking crisis, HMRC took the same approach only to return to their normal ways a couple of years later and in my experience, they can be even more aggressive as the demand for collections from the treasury increases. To make matters worse given the change in legislation in December 2020, now that HMRC are preferential creditors in an insolvency, they are likely to push even harder knowing they will be top of the queue for payment if the business fails.

Beware HMRC collections will be returning to normal SOON.

As you will appreciate, during the pandemic HMRC has been very busy dealing with the various support schemes, ... more

The temporary restrictions that were in place will be lifted with new targeted measures to support small business and commercial tenants introduced after 30 September 2021.

An End to the Temporary Insolvency Measures – Almost but not Completely

Companies in financial distress as a result of the pandemic have been protected from creditor action since last ... more

When a Company fails it is quite common that directors are excused of Wrongful or Insolvent trading. Wrongful trading, sometimes called insolvent trading, is quite a complex area to discuss and is based on the facts of each individual case so advice should be sought if you think this applies to your company.

Wrongful trading, Insolvent trading – What is it and what does it mean?

When a Company fails it is quite common that directors are excused of Wrongful or Insolvent trading. Wrongful ... more

Government Extends Help Again but are we just kicking the problem down the road?

This is the fourth time I have written about the Government extensions of the insolvency provisions brought in ... more

I the first of these BBL articles we looked at your options if you are struggling to pay your Bounce Back Loan payments. If you haven’t read that article, it may be worth reading it now because we discuss the routes available to you via the ‘Pay as you Grow’ options. In this article, we want to focus on what happens if your financial situation has progressed to a critical stage.  There is a lot of uncertainty and conflicting opinions so, we will try to answer the main points raised by the question ‘what happens if I can’t pay back my Bounce Back Loan’?

What to do about your Bounce Back Loans (BBLs) Part 2 – What if you cannot pay it.

I the first of these BBL articles we looked at your options if you are struggling to pay your Bounce Back Loan ... more

Bounce Back Loans are becoming a big problem area and we may only be scratching the surface of the impact they may well have on business. Thinking back to when they were first announced, they may not have been the covid response many limited companies wanted, but they did potentially offer a stop-gap solution.

What to do about your Bounce Back Loans (BBLs) – Part 1

Bounce Back Loans are becoming a big problem area and we may only be scratching the surface of the impact they may ... more

The Government has announced a new scheme to help individuals with debt problems. The scheme is described as ‘Breathing Space’ and comes into effect on 4 May 2021.

New Scheme Announced for Individuals with Debt Problems.

The Government has announced a new scheme to help individuals with debt problems. The scheme is described as ... more

I also think it is fair to say that Pre-Pack sales by an Administrator have had a high level of press coverage. All the evidence suggests that a Pre-Pack sale commonly leads to a better return to creditors than a forced sale shut down. But equally, creditors are understandably concerned because the sale is conducted very quickly following the appointment of the Administrator and often, they are the last people to hear about it. This concern is always worse when the sale is to a connected party.

Pre-Pack Sales to Connected Parties – The New Evaluator Process

First of all, it is fair to say this blog is very technical and probably more for our professional contacts, so if ... more

The Insolvency Service produces monthly figures for both corporate and personal insolvencies and as mentioned previously, I rarely comment on them. Partly because insolvencies are seasonal, so generally increase in the first and third quarter of the year and decrease in the second and fourth quarter and partly because there is not much to talk about.

Latest Insolvency numbers are released for March 2021.

The Insolvency Service produces monthly figures for both corporate and personal insolvencies and as mentioned ... more

The answer to the question ‘when is a good time to close your solvent business’ is never an easy one. However, with capital gains tax and asset disposal relief both still working in your favour, if you are looking to close your solvent business then 2021 or early 2022, may well be the time to make the move. If not, you could see a much less favourable tax landscape in the future.

Good news for those planning a Members’ Voluntary Liquidation (MVL)

The answer to the question ‘when is a good time to close your solvent business’ is never an easy one. ... more

Groundhog Day - Government Extends various measures to assist struggling business

Why Groundhog Day you ask? Over the last 12 months, I have posted about various Governments measures brought in ... more

VAT Deferrals – What can you do now if you still have not got the funds to pay?

Believe it or not, it has been almost 12 months since businesses in the UK were first given an answer to the ... more

I thought I would provide some thoughts on how the change may affect you because, despite the budget not quite producing the fireworks some were predicting, it did have a lot worth discussing in there.

Budget 2021 – Thoughts from an Insolvency Practitioner

Like most people, I get several excellent emails and budget summaries every year and I would guess you do too. ... more

The Insolvency Service produce monthly figures for both corporate and personal insolvencies and to be honest I rarely comment on them. Partly because insolvencies are seasonal so increase in the first and third quarter of the year and decrease in the second and fourth quarter and partly because there is not much too talk about.   However, I feel that there is a clear trend and whilst on paper the trend appears to be good news it hides several issues which will hit the economy later in the year.

Company Insolvencies in January 2021 50% lower than January 2020, but is this good news?

The Insolvency Service produce monthly figures for both corporate and personal insolvencies and to be honest I ... more