Administration

(see also receivership)

Administration is designed to protect companies from their creditors while undergoing a restructuring plan. During administration control of the business is handed to a licensed insolvency practitioner appointed by the courts.

Administrators will examine whether the company can be saved and may try to sell the company, or part of it, as a "going concern" while stripping out costs.

The mechanism has been used by football clubs (such as Leeds and Crystal Palace), and various retailers (including Courts, Allders and the Gadget Shop).