Study finds higher failure rates for companies revived under pre-pack administrations
The Guardian · October 25, 2026Original source ↗
What happened
Research indicates that insolvent businesses reacquired by former management through pre-pack administrations are more likely to fail and generally repay less to creditors. This study raises concerns about the practice of liquidating companies and reestablishing them to avoid existing debts.
Why it matters
The findings highlight potential risks for creditors and stakeholders involved in such business practices.
How this story affects people
How does this story affect you if you are a creditor of a company undergoing pre-pack administration?
You may face significant financial losses, as these businesses tend to repay far less than expected. This situation raises concerns about the reliability of such administrations and the potential for repeated failures.
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