Umbrella company Albany went into administration yesterday following days of speculation. It is now hoped that Albany’s creditors, including many IT contractors, may actually receive some of the money which is owed to them.
It is believed that Albany got into difficulty when clients were unable to pay their bills thus resulting in a shortage of cash for Albany. Administrators Carter Backer Winter (CBW) said this led to a “knock-on effect” on contractors. Several Albany companies are involved: Albany EMEA and Albany Holdings are in administration. CBW are also acting as liquidators of Albany Employment Services and Albany Management. There has been no mention of Albany Technologies (UK).
John Alexander, CBW partner and joint administrator commented in a press release: ““We have only just been appointed so it is too early to be definitive. However, we are hopeful that there will be at least some dividend to creditors, including former employees who may also be entitled to additional amounts from the government’s redundancy fund where they have unpaid salaries.”
He also spoke of joint administrator, Melvyn Carter’s role to “ascertain the exact situation”. He confirmed that Carter would be contacting each individual creditor “within the next couple of days”.
Speaking about Albany’s foreign subsidiaries, Alexander commented: ““Albany has a number of foreign subsidiaries, particularly in the USA, Brazil, Canada, the Netherlands and also Asia-Pacific. These businesses are independent, stand alone, profitable and sound.
He concluded: “It will continue to be business as normal for them, although I am keen to hear from trade purchasers or anyone else interested in acquiring them. I can emphasise that this is not a ‘pre pack’ insolvency.”