Planet X N̶o̶t̶i̶c̶e̶ ̶o̶f̶ ̶I̶n̶t̶e̶n̶t̶i̶o̶n̶ ̶t̶o̶ ̶a̶p̶p̶o̶i̶n̶t̶ ̶a̶n̶ ̶a̶d̶m̶i̶n̶i̶s̶t̶r̶a̶t̶o̶r̶ sold - June 2023

https://road.cc/content/news/future-planet-x-secured-cycling-retailer-sold-301801

"Following a seven week sales process that generated significant trade and financial investor interest, the business and assets were sold via a pre-pack transaction to Winlong Garments Limited."

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"All of the Company’s 33 employees have transferred to the purchaser as part of the sale."

https://www.begbies-traynorgroup.com/pre-pack-administration

The steps involved in a pre-pack administration

1. A company is under pressure from creditors and is threatened with receivership or liquidation.

2. A firm of licensed insolvency practitioners is contacted to discuss the situation. They perform a business assessment and provide a range of possible options.

3. If pre-pack administration is decided upon, the IP values company assets and prepares a Statement of Affairs. Begbies Traynor are licensed insolvency practitioners with offices nationwide – we offer advice and support to companies in distress.

4. If business assets are to be sold to an existing company, steps will be taken to ensure the buyer has the necessary funds. This includes the provision of management accounts and other information to the IP.

5. If the intention is to transfer the assets to a new company, or ‘newco,’ cash flow, profit and loss, and balance sheet forecasts should be provided to demonstrate the viability of the new company, and their ability to purchase the assets. Assistance to buy in the form of asset-based lending may be available.

6. The company is placed into administration, suspending all legal actions against them, and assets are sold immediately.

7. The administrator organises a creditors’ meeting during which an explanation for taking this insolvency route is provided, and at this stage, a recommendation for liquidating the company is often given.

8. The IP repays creditors pro-rata, with funds received from the liquidated assets.

I imagine the whole thing is rather damaging to the relationships you have with suppliers. After all, they will have lost money to this affair. Would they opt to start their business relationship all over again? 🤔