Agency is going into liquidation!

[MyUserName]

Sounds like they could be in financial difficulty and these kind of "mistakes" happen when they are having cash flow issues. I had an agency go bust on me before.

Are you a member of PCG Plus? This includes agency default insurance which will pay out if agency goes bust. You'd need to check terms to see whether you would be covered if you took it up now, but you might be.

Yeah, I am in PCG Plus for this exact reason (I started to worry months ago about them).

When your agency went bust were you able to carry on with the client?

WHS - these are classic signs of an agency with a cash flow issue.

And not the first signs either, which is one of the reasons I refused to go monthly with them!

[Taita]

I'm signed up to one of those credit check services and have my current agency automatically tracked on it.

They warned me about an "adverse risk event" so did a credit check and it turns out they have appointed a liquidator to carry out a creditors' voluntary liqudation at the end of the month

Anyway spoke to my contact at the agency and they are "Changing their name" but I have had nothing in writing yet. Presumably some sort of phoenixing or assignment, I had a quick look at my contract but it is quite silent on what happens if the agency goes pop..

I'm on weekly invoicing so things are up to date financially, but obviously I am keen to keep an eye on this!

Reckon I should get the CV updated? Or speak to clientco about it just in case I need to come direct?

If you work for a financial agency based in the City then search the London Gazette and you might see it.

Voluntary liquidation sounds like packaged administration to me. Whatever they are up to, prepare for the worst and limit your exposure by pushing for quick payment of each invoice.

Whatever route they are planning, the object is to shield what assets remain from their creditors and you are a non-preferential creditor ----- way down in the pecking order behind HMRC and any other body that may have a mortgage, debenture or lien on the company's assets. Certainly let your client know your fears, they may be at risk too although they cannot legally divert money they owe the agency to you. However, forewarned is forearmed and the client may take some steps to protect their ongoing interests and yours.

Be careful how you raise the issue and remember you are a professional raising legitimate business concerns not an emotional victim of a crook! Oh and top marks for doing the 'business' thing and keeping an eye of your customer's ability to pay for your services!

[minstrel]

When your agency went bust were you able to carry on with the client?

The contract end date with my agency was within a few days of them appointing liquidator, so I was luckily able to negotiate with client to go through a different agency.

If you are PCG Plus and on weekly terms then you are in a relatively good position.

Have you seen the balance sheet of the agency? It's worth taking a look on Companies House. If they are trading insolvently then you may have grounds to terminate your contract and go direct/through another agency.

Last year's accounts are probably a bit out of date, but if they were solvent at last period end there is less chance you will end up with nothing if/when they do liquidate.

Have you heard anything from the liquidator yet? You said one has been appointed, so you should receive a formal notice from them. If you know who the liquidator is you can get in contact with them and they should be able to provide more details. They will product a statement of affairs which will basically tell you how much financial trouble they are in.

[Boo]

I'm signed up to one of those credit check services

Which one, may I ask ?

and have my current agency automatically tracked on it.

I'm on weekly invoicing so things are up to date financially, but obviously I am keen to keep an eye on this!

Reckon I should get the CV updated? Or speak to clientco about it just in case I need to come direct?

I'd hold back any timesheets for the minute if I were you. Also, discretely mention it to your client and see if they're aware.

Boo2

[minstrel]

I'd hold back any timesheets for the minute if I were you.

I'm not sure about that.

If he's on weekly invoicing and getting paid within a few days then probably better to keep submitting them while he's being paid.

No sense in having weeks of unprocessed timesheets. Client is under no obligation to pay if they are not submitted through agency and liquidator will more than likely force timesheets to be submitted.

If timesheet and invoice is not submitted you will not be able to claim under PCG insurance.