Jason Mark Elliott and Craig Johns of the Manchester office of Cowgill Holloway Business Recovery LLP have advised Willow Financial Management LLP on a pre-packaged administration sale of the business completed on 1 August 2013.
Willow Financial Management LLP was formed in 2007 and had been trading as a partnership prior to this since 1991, providing financial planning and investment advice. The Leicester-based business had 18 staff and a turnover in excess of £1m per annum but had encountered significant financial problems as a result of the FCA “freezing” a particular fund which the LLP had utilised.
The effect of this was that the value of this fund had significantly reduced, thereby exposing the LLP to potential claims from investors.
A sale of the business and assets was completed on 1 August 2013 in two separate transactions to associated companies and preserved employment for 17 members of staff who were transferred under TUPE.
Jason Elliott, Joint Administrator and Cowgill Holloway Business Recovery Partner, commented: “The collapse of the Fund, which was completely beyond the control of the LLP, left the business in a situation where it was unable to meet the claims of the investors. By completing a pre-packaged sale we have maximised realisations for creditors and has safeguarded jobs.”
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