Spoken to Prosperity4 Administrators

[WindyAnna]

And here is what they told me, make of it what you will ....

They believe that Prosperity4 is a viable business which is and will continue to trade. The administrators have analysed the books and can see no reason why they should not successfully come out of administration and continue to trade.

I specifically asked whether the administration was voluntary or whether a creditor had taken them into administration. They told me that a creditor had demanded immediate payment of a large sum which was not available at short notice and as a result administration was the most sensible option.

They were adamant that there was money in the company and that all salaries and holiday payments would be met. There were no problems in finidng the funds for the July pay run and there was no reason to believe that August would be any different.

She advised that contractors leaving could undermine the viability of the company and that by going elsewhere we would be decreasing the chances of successfully exiting administration.

It was much more positive than when I spoke to Futuro's administrators earlier in the year, the response than was "there is no money, they owe the bank a fortune, we can't commit to paying you anything". So on that note it's better but it's all relative isn't it?

Windy

[Ardesco]

She advised that contractors leaving could undermine the viability of the company and that by going elsewhere we would be decreasing the chances of successfully exiting administration.

How many contractors are going to cut and run anyway because they have gone into administration?

Do you want to be one of the contractors that didn't leave when they could pay and find yourself loosing out in the long run (Not that you will definetly loose out in the long run, but it is possible)?

Do you care if the administration is unsuccessful if you get your money?

If they didn't have enough money to one client who demanded to be paid in full, what is going to happen if lots of other people start to demand to be paid in full?

I know what I would do personally if I was involved.

[WindyAnna]

Like I said - make of it what you will, I wasn't planning to hang round myself but others may feel differently!

[Ardesco]

Yup and they may well pay the price for their complacency. Surprising just how many people like to bury thier head in the sand and hope for the best when things like this happen...

[BrilloPad]

They told me that a creditor had demanded immediate payment of a large sum which was not available at short notice and as a result administration was the most sensible option.

this sounds very dodgy - I know you can't trade while insolvent but if there is enough cash somewhere you can carry on?

[Cowboy Bob]

Having been through a company going bankrupt on me, I suggest that no-one wastes any time. Don't hand them any outstanding timesheets and leave as soon as possible to minimise loss.

Any kind of administration should be enough of a warning sign...

[FidessaContractor]

Hi

I've been following this story here, so registered to post my two bits.

I've been with them on and off for a few years - had hell with them at the beginning, but they've turned the corner and I've had a good releationship with them since.

I spoke to my account manager last night - this is what they told me:

That a 3rd party finance company had requested a payment in whole of the debt (I believe that they use these types of companies to bridge the shortfall in moneys from paying us to getting paid.) This was, allegedly as a result of a falling out at the top - board level. the 3rd party got wind of this and demanded full repayment and administrators were called in.

I was led to believe that it was temporary, although this news may have a domino affect, and without contractors their income stream is cut off, and I should think everything will go down hill pretty quick.

I'm also worried about the possible fracas that led to these sentiments in the first place - if the 3rd party had wind of something....?

I do know that I was paid in full this week for last month, no problem. I will hold off invoicing this week. I will be speaking to my agency to explore my options, but I think the next couple of days will be the clincher - they need a rapid publication of the state of affairs and clear, concise plan going forward.


I'm interested in hearing other's views - apart from P4's crap get out comments, which aren't very helpful.

FC

[Chugnut]

Just reading the posts, I would definitely bail now to mitigate your risk. If the administrators are in for whatever scenario, its sounded the death knell for the company. Enough people will not like the sound of it and get out, making the company even more unstable.

House of cards. It's inevitable now I think.

[WindyAnna]

FC

I'm interested in your comment "I believe that they use these types of companies to bridge the shortfall in moneys from paying us to getting paid" - I certainly don't get paid by P4 until such time as they have had payment - do you? I can't see that there is a gap for them to finance - agencies do but not umbrellas.

It certainly looks like the vast majority of contractors are leaving which will leave the business pretty untenable.

The fact that they have got into this position with effectively a very straightforward business model says more about them than anything.

I was also paid this week. However, I will be moving.

My only outstanding question is at what point can I start to invoice through a different umbrella - I'm waiting for legal advice on this. At the moment I am an employee of P4 and they have a contract with my agency covering my services, at which point that contract can be moved is a degree removed from me. I await advice from my solicitor and from my agent. If anyone has any idea on this I'd be interested. When Futuro went into administration we could only vary the contract from the point at which the administrators allowed it, i.e. any backdated stuff had to go through Futuro not through our new agency or direct. I suspect that timesheets up to the point of moving will have to go through P4 but I'm waiting to hear.

Windy

[scooby]

Just reading the posts, I would definitely bail now to mitigate your risk. If the administrators are in for whatever scenario, its sounded the death knell for the company. Enough people will not like the sound of it and get out, making the company even more unstable.

House of cards. It's inevitable now I think.

A fair comment. i've already changed umbrella as started new contract, but i have outstanding invoices. people leaving will be in the same boat... 10k is a lot of money to lose or risk...