Guides

What does administration mean?

A plain-English introduction to the administration process and what it means for a company, its creditors and potential buyers.

Administration is a formal UK insolvency procedure intended to protect a company from creditor action while an appointed administrator assesses the available options. Those options may include rescuing the company, selling its business or assets, or achieving a better result for creditors than an immediate liquidation. An administration record does not by itself mean that the business is for sale. Buyers should confirm the current position with the appointed administrator and undertake independent due diligence.