What is an Administration?
An Administration is a UK insolvency procedure designed to protect a company whilst the Administrators try to rescue it through a sale and if that is not possible, by realising the assets of the company for the benefit of the creditors. A company is deemed insolvent if it is unable to pay its debts. Only Licensed Insolvency Practitioners can be appointed as the Administrator(s) to manage the company’s affairs during an Administration.
How is this different to the CVA and what happens to the CVA?
A CVA is a binding agreement between the company and its creditors to agree a reduced or rescheduled debt arrangement in return for a commitment by the company to restructure its business affairs. The conditions of the CVA are immediately terminated upon the company entering Administration.
An Administration process is different to the CVA. In the CVA, the Company remained under the control of the UK directors. However, during an Administration, the Administrators take control and manage the day to day affairs of the business, while evaluating their options regarding the Company’s future and determining how to obtain the best possible outcome for all creditors.
Is the business still trading?
As no viable offer to purchase the Company’s business and assets was received, all stock has now been sold and the Company ceased to trade on 24 April 2018.
Are there any stores are still open?
No, the Company is no longer trading. Online sales ceased on 28 February 2018 and the last stores closed on 24 April 2018.
Can I buy any remaining stock?
No. All stock has now been sold.
Is any residual stock available for charitable donations?
Unfortunately the stock liquidation strategy deployed means that there are no further items that can be donated.
Can I buy any fixtures, fittings or display stands from the closed stores?
No. These items are either the property of the landlords to the respective premises or are owned by third party suppliers.
Can I buy any badged TRU signage from the closed stores?
No. The intellectual property utilised by the Company was pursuant to a Royalty Agreement with its U.S. parent and is not available for sale.
Can I buy any intellectual property such as the domain names, social media accounts or customer data?
No. These items are not the property of the Company or are subject to legal restrictions preventing their sale.
I am interested in the Company’s former stores – who should I contact?
Anyone interested in the Company’s former store portfolio should contact Sam Rose of agents CBRE on telephone number 020 7182 2794