Pre - Pack Sales In Administrations - An Employment Perspective

The term "pre-packaged sale" (or pre-pack) refers to an arrangement under which the sale of all or part of a company's business or assets is negotiated with a purchaser prior to the appointment of an administrator, and the administrator effects the sale immediately on, or shortly after his appointment.

We are in difficult economic times, and one of the goals of the increased emphasis on "rescue culture" is to find ways in which troubled and insolvent businesses can be made more attractive to potential purchasers.

A significant determining factor in a purchaser's decision to buy an insolvent business is likely to be the extent of the liabilities that the purchaser will take on. Often the most significant liability in this regard will be the employees of the failing business.