Caught early? How pre-admin ledger management delivered results


When the funder of a premium smoked fish business turned to us to help maximise collectables pre-administration, a proactive strategy delivered outstanding results.

Our approach

The business supplied a range of salmon products to major UK supermarkets, as well as independent delis and farm shops, but following the loss of a significant contract with a major retailer it looked set to enter administration. 

The funder asked us to step in pre-admin to take immediate charge of the sales ledger to give them the best chance of collecting debts.  We immediately implemented an initial verification assessment of the company prior to insolvency. 

We then liaised with management to ensure debtors were provided with all relevant documents and that any potential disputes were dealt with. Our team subsequently removed all books and records, taking them to our offices, where they were securely stored and we also completed a review of any rebates owing that would impact collections. 

Crucially we made sure that the focus on key accounts was escalated to our experienced in-house pre-legal team who took over all communication in a bid to secure payment.

One of the key accounts owed a substantial six-figure debt and whilst they had indicated that some of the debt was disputed, they had failed to provide any details or documentation.

Drawing on an extensive 30-year debt litigation career our Head of Recoveries was asked to provide advice on the matter,  given that in the absence of any engagement, it was likely that legal proceedings would be necessary.

He wrote to the debtor advising that we had attempted to engage with them to resolve the matter in an amicable manner and that failure to do so would leave us with no alternative but to issue legal proceedings.

We drew the debtor’s attention to the Practice Direction for Pre Action Conduct and Protocols, specifically paragraphs 13-16, which states that the Court has the power to impose sanctions on parties if they fail to comply with the direction, which includes not providing details of any purported dispute when requested.

The results we secured

We made a full recovery of all debts for the funder with a large surplus. This included engaging the key account and getting agreement on and payment in a full and final settlement within the first 14 days of the administration, avoiding protracted and costly litigation. This was particularly pleasing as further issues emerged during the administration which would almost certainly have reduced the collections later in the process.

In quick conclusion

Because the funder engaged our services early by the time the administration came along we had already escalated matters highly effectively to the correct departments including our pre-legal team which ensured that the debt was in a strong collectable position.