Administration is a procedure which protects the company against creditor action whilst a solution can be found. This is normally a temporary measure whilst an Insolvency Practitioner takes responsibility for the day-to-day running of the business. They will try to save the business, or part of it, and prevent any further deterioration in the company’s financial position.
When a company enters into administration, it also gives time to attract investors to refinance or possibly make cuts to areas within the business so it becomes viable again.
If you are looking to save your business, call Abbey Taylor.