It’s facile to blame administrators instead of the former management for creditors not getting paid
The difficulty is the administrator is often more expensive than the day to day running of the business. It’s not that they’re not doing a hard job and doing it well, it’s that they sure as hell know how to charge for that and manage to take their money when even the tax man can’t.
It’s difficult not to find it galling that a business can enter administration for two weeks and end up paying 60-70% of its value to the administrator leaving everyone else to squabble over the 30% when there would have been a 3x bigger pot to divy up had they just gone bust.
Of course counter to that are the businesses saved when they go into administration who go on to settle up their debts and come back out profitable. There’s got to be at least one of those a year.
Employees are somewhere near the bottom of creditors. It’s the banks/secured lending first, then HMRC, then suppliers.
Happy to be proven wrong but I’m pretty sure you’ve got the ordering here incorrect.
It’s a long time since I had any reason to be interested but seem to recall when it all loomed over me:
VAT
salaries
Secured lending
Other tax & NI liabilities
Supplier (contractual only)
Redundancy
Unsecured creditors (including supplier – anything outside contractual debt)
