Chesterfield business formally plunges into administration
A Chesterfield food and drink venue has formally entered administration.
A Companies House document dated April 19 shows Keith Cottam and Gareth Self, of Chesterfield-based Restart BTi, have been appointed administrators of York House Ltd under the Insolvency Act 1986.
The food and drink venue on St Mary's Gate - which opened at the site of the former Abacus bar last August - is still trading.
Restart BTi's website states: "Our professional business turnaround and insolvency team has already helped hundreds of individuals and businesses to regain control of their finances and restart their journey to a more prosperous future."
According to www.touchfinancial.co.uk: "The purpose of administration is to enable the company to be rescued as a going concern. Through being in administration an insolvent company is protected from its creditors and given time to restructure itself in a way that will allow it to survive.
"The company directors might choose to go into administration or it could be forced on them by creditors or their bank.
"The process of going into administration involves the appointment of an insolvency practitioner, often an accountancy firm, to run the business. They have a statutory duty to work on behalf of all the creditors and they will investigate what actions are available to save the business.
"At the same time they will do what they can to keep the business operating as normal, although sections that are clearly losing money will be shut down very quickly. They will do what they can to cut operating costs, which is why a round of redundancies often occurs shortly after their appointment.
"A period of administration can last for as long as a year, sometimes longer. However, the administrator will want to resolve the situation as quickly as possible.
"A successful administration results in the company being rescued and continuing to operate. It may be in a different form, with some elements having been sold off, and it may have different owners.
"Good examples of businesses that survive administration are football clubs. Over the years a number of clubs have entered administration and the club has survived, although the ownership and legal structures may have changed.
"An unsuccessful administration sees the company going into liquidation while its assets and business are sold off."