Agency went into administration

[karupalli]

My agency went into administration and other company(which bought the earlier agency) started invoicing my client and paying me money. Eventhough they are paying regularly, I am worried whether this new company is good company. Now they sent me contract to sign (With New company name). I am wondering whether I can get rid of them completely and go direct with client? Can anybody advise?

[BrilloPad]

My agency went into administration and other company(which bought the earlier agency) started invoicing my client and paying me money. Eventhough they are paying regularly, I am worried whether this new company is good company. Now they sent me contract to sign (With New company name). I am wondering whether I can get rid of them completely and go direct with client? Can anybody advise?

Did you lose any money? What does your contract say about payment?

[BlasterBates]

My agency went into administration and other company(which bought the earlier agency) started invoicing my client and paying me money. Eventhough they are paying regularly, I am worried whether this new company is good company. Now they sent me contract to sign (With New company name). I am wondering whether I can get rid of them completely and go direct with client? Can anybody advise?

You're actually quite lucky as you aren't losing any money. If you decide to not sign their contract you might end up not being payed the money owed to you be the co. in adminsitration, and your chances of getting that back will be virtually 0. I'd go with the new company, and may be direct at renewal time.

[thunderlizard]

It's fairly normal. Agencies invariably tie up the contractor's end of the contract with "this agreement may not be assigned under any circumstances", but they always give themselves a nice free hand to sell on their own side.

[Not So Wise]

Hard to understand exact situation as you say an agency that went into administration was bought by another agency, which is something I consider unlikely (if they did this would not touch 2nd agency as they are being managed by idiots).

More likely case that second agency "bought" the ongoing contracts of the first agency from the administrations. Quotes around "bought" because never seen a contract that gives agency rights to do such a thing, they normally just hope contractors/client will be happy to continue to work with new agency

If first agency went into administration, then most likely yes you can go direct if neither you nor client have signed anything with new agency as generally standard contracts contain T&C's that make them null and void as on going concerns if one party goes into administration/bankruptcy

If is case that first agency were just bought by another agency is more tricky situation and most likely cannot go direct if contract T&C's prohibit this

[karupalli]

bought

First company is bought by second company.. BUt I dont know what contracts / Terms they have.

I didn't loose any money.. They are paying me until now correctly.

[karupalli]

thanks

Thanks guys for your efforts helping me.

[karupalli]

more picture

Sorry .. Second company says that they bought(management buyout) the first company but I can see on companies website that the first company is into Administration. How do we know whether they bought or not? Actually same people are working in second company too.. It seems there is some problem with share holders and they started new company.. Not sure what kind agreements they have between them.