John Alexander and Melvyn Carter of Carter Backer Winter LLP appointed joint administrators to Albany Holdings Ltd

10 February 2010

Today John Alexander and Melvyn Carter of Carter Backer Winter LLP (“CBW”) have been appointed as joint administrators to Albany Holdings Ltd and its UK subsidiary Albany EMEA Ltd and liquidators of UK subsidiaries Albany Management UK Ltd, and Albany Employment Services (referred to as “Albany” in this release).

Background

In its latest published accounts Albany Holdings and its group had a turnover of around £100million and profits of around £300,000, with operations in the UK and around the world.  A recruitment and workforce management business, Albany particularly provides contractors (who were paid employees of Albany) to a range of large businesses on a contractual basis.

However, its businesses in the UK appear to have faced cash-flow difficulties, with some major clients apparently not paying their bills.  This led to a knock-on effect, with some of its contractors not being paid.

At one point Albany employed around 300 people in the UK, but this is believed to be around 150 (staff and contractors) currently.

What does this mean for employees of Albany in the UK?

Joint Administrator and partner at CBW, John Alexander says: “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. 

“We will be moving quickly to ascertain the exact situation and will be writing to creditors individually within the next couple of days.”

What does it mean for Albany’s customers in the UK?

There has been no transfer of Albany’s business in the UK and no deals have been finalised, although this may yet happen if it can preserve value for the creditors of Albany or support the overseas operations.  The administrators will be contacting its UK customers to ensure a speedy payment of all outstanding sums quickly, many of which were subject to an invoice finance agreement in the UK.

What does it mean for Albany’s customers, operations and employees globally?

John Alexander said: “I would like to emphasise that this only affects Albany in the UK.  Albany has a number of foreign subsidiaries, particularly in the USA, Brazil, Canada, the Netherlands & also Asia-Pacific (out of Singapore).  These businesses are independent, stand alone, profitable and sound.  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.”

 

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All press enquires to Tim Prizeman / Becky Ashall of Kelso Consulting (PR advisers) : 44 (0)20 7242 2273 (2272)

Carter Backer Winter LLP

Chartered Accountants

and Business Advisors

Enterprise House

21 Buckle Street

London E1 8NN

cbw.co.uk

t: 44 (0)20 7309 3800

f: 44 (0)20 7309 3801

DX 513 London City

info@cbw.co.uk

Notes to Editors

Albany Holdings Ltd and associated companies in administration are separate to Albany Appointments, a recruitment business sharing a similar name.