Atradius Update: Studio Retail to appoint administrators as the supply chain crisis bites
Studio Retail Group has become a casualty of the supply chain crisis, as it calls in administrators.
A notice of intent has been filed to the courts with proposed administrators, Teneo, expected to be confirmed in the next 7-10 days. Company shares have already been suspended and its transactional website is not currently taking orders.
The administration process: a quick guide
Creditors of the company can expect to receive a formal notification of the appointment of the Administrator.
In many instances the trade and assets of the insolvent company may be sold and a new company established. There is often a change of name for the old company if this happens. This new company will continue to trade often with the same brand name and premises. The new company is not liable for the debts of the old failed business. The insolvent business will be managed by an administrator.
The Administration process for the failed business will normally run for 12 months. At this point the company is likely to pass into Creditors Voluntary Liquidation; this is a frequently used vehicle for the distribution of dividends. There are other options to exit Administration, but Creditors Voluntary Liquidation is the most regularly used.
The Administration process can be extended, however the Administrator would need to apply to the Court for approval to do so.
At approximately 8 -10 weeks from appointment, the Administrator will issue a statement of affairs (usually including the creditors list) and their proposals for dealing with the Administration.
Insolvency rules mean that most communications are published electronically and so you should be alert to the fact that the Administrator's website will be updated, also you should note that creditors' meetings are now infrequent. However, you will be alerted to the publication of the Administrator's proposals, where you will be able to access a proxy form for voting.
We hope you find this update useful and if you believe that you have a valid credit insurance claim upon Atradius, we would ask that you notify us immediately by lodging a notification of non-payment.