Can a company in Administration still trade?

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Can a company in Administration still trade?

Yes, it can. With an Administrator in office, it may actually be in the best interest of a business to continue to trade. If a company ceases to trade, then very quickly, its customers may well go elsewhere, which will significantly impact upon the goodwill and the value of the business. With the Administrator in office they can ensure that the trading continues but at the same time, the suppliers, the employees, and everyone else is being paid as they should.

Whilst this is happening, the business may be marketed to find a new buyer to take the ongoing business forward through a new company. So, trading in Administration can be very worthwhile, it can ensure that the value is protected, and can ensure that there’s a best outcome for all involved, the employees, the creditors, and all stakeholders.

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