The Business Sale Report has launched the first interactive UK map that details the locations of all distressed companies that have recently collapsed into administration.

The 'mash-up' – seen at http://www.business-sale.com/administrations/map – pulls in details of distressed businesses from the Business Sale Report's in-house databases and displays the information with the help of Google Maps technology. It succeeds in painting a more vibrant picture of potential target businesses, beyond the black and white of text listings and can reveal interesting geographical clusters. An additional layer of information can be seen by subscribers to the Business Sale Report, who can zoom right in on potential targets and view financial and contact details of administrators handling any potential sale of the business or related assets.

The Business Sale Report's Stephen Ideh said that every detail is crucial when it comes to the buying and selling of businesses, and the map provides a crucial – and until now unfulfilled – service.
"This map is the first in the UK to provide a comprehensive, geographic picture of businesses that are facing distress" he said.

"There is no other service like it, but the benefits of it are abundantly clear. Prospective buyers of distressed companies and assets want to be able to see at a glance where the latest business administrations are in their region, and this allows them to do that. They can also identify clusters of distressed businesses in the UK and also, thanks to the labelling on the map, will be able to see whether there are other types of business in which they may be interested, elsewhere in the UK."

Businesses are flagged up with pin-pointers on the map which, when clicked on, bring up more of the information about the particular business that is contained in its full listing. Many entrepreneurs monitor the distressed business marketplace for competitors who have been placed into administration. They capitalise on their competitor's failings by purchasing the business, bidding for customer databases, equipment and property or taking over the beleaguered company's profitable contracts.

When a company faces severe financial difficulties, one or more of its creditors (or the company's own directors) can force it into administration. The administrator, a licensed insolvency practitioner, will want to rescue the business as a going concern or achieve a better result for the creditors than if it put the business into liquidation. This is often achieved by selling the business, or, if this is not possible, by selling the company's assets. In many instances, the business is still trading.

The Business Sale Report Administrations Map is now live, with the full details of the businesses available to subscribers.

An East Sussex-based country house hotel with a famous past is on the market following its administration.

The Shelleys in Lewes, which was once owned by the family of poet Percy Bysshe Shelley, was placed into administration due to a downturn in trade. The 4-star, 16th Century, grade II listed country house hotel, which also boasts a one AA rosette-ranked restaurant, is currently still trading despite its administration.

Partners at insolvency specialists FRP Advisory have been appointed as joint administrators of The Shelleys and are currently carrying out 'extensive marketing' in a bid to find a buyer for the property.

Jason Baker and Chris Stevens of FRP Advisory, confirmed, "Trading is on-going and the hotel and restaurant are continuing to welcome guests as usual. Meanwhile, a purchaser is being sought for the business."

Baker and Stevens said that The Shelleys had been affected by the fact that several of its key corporate clients had moved away and no longer needed hotel accommodation in Lewes.

The hotel, which can sleep 37 guests, boasts 10 bedrooms, a large dining room, bar and two conference rooms, plus traditional English country garden and parking.

Its current owners, Carlo Fernando and John Rudich Fernando, bought the hotel in 2007 when it had a guide price of £2.5 million attached. The hotel had also been previously sold earlier that year.

Select Homes, an Angus property firm, has gone into receivership due to its outstanding bank debts. Although the business did not employ any other people apart from the directors it is yet another sign that the Scottish economy is in difficulties. The firm oversaw an ambitious luxury homes development in Turfbeg, Forfar, around five years ago. The firm does own some residential development land that will be put up for sale. Contact details of the administrator can be found in our subscriber section.

Inverness-based Highland Quality Construction, one the largest civil engineering contractors in the north of Scotland, has reportedly gone into administration.

No one at the company could be contacted to confirm this. However, subsidiary company Highland Recycling Company Ltd, a separate company, has told the Construction Index News it was unaffected by the administration.

The BBC reported that the directors of Highland Quality Construction (HQC) resigned last Thursday and an administrator was appointed the following day. HQC had an annual turnover of £20m.

For the latest lists of businesses going into administration please check our businesses in administration pages.

This latest news is unfortunate, as only recently the RICS reported that the net balance of workload for construction businesses had moved into positive territory. However, the RICS did note that there was a wide regional variation with Scotland being particularly hard hit. The AIB had also reported a rise in businesses going into insolvency procedures in the first quarter of this year and they hoped that this was not an emerging trend. Looks like the recent news out of Scotland is not too good for the Scottish economy.

In welcome news for the business community, corporate insolvencies are down according to the Insolvency Service. There were 4,082 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the first quarter of 2010 (on a seasonally adjusted basis). This was a decrease of 8.4% on the previous quarter and a decrease of 17.8% on the same period a year ago. Company Voluntary Arrangement (CVA) numbers have remained stable and have been seen as a useful rescue tool.

However, for people in the industry there is a feeling that the figures are only lower due to the HMRC “time to pay” policy where businesses can negotiate very good terms to pay VAT and PAYE owing. The Begbies Traynor Red Flag Alert backs this up as it has reported an increase in businesses facing financial problems that have not been reflected in the insolvency figures. The significant debts owed by businesses to government have not been called in for now.. As pressure increases to pay back the deficit it is likely that there will be more corporate failures going into 2011. As the economy improves there will be opportunities for investors to take advantage by buying up struggling companies to increase market share. For a list of struggling companies we have published our list of businesses facing winding-up petitions.

Aggressive cost cutting and improved cash management by firms has meant the number of businesses falling into administration dropped in 2010. The number of businesses that went into administration in the first quarter of 2010 was 555, which is a significant improvement on the 1,028 businesses in the same period last year. However, there are many businesses that are finding themselves in a difficult position and it is expected that cuts in government spending will put further pressure on businesses.

However, the Business Sale Report, which has published lists of businesses that have just entered administration over the last thirteen 13 years, has recently seen a huge increase in enquiries from investors looking to buy businesses in distress. when questioned Entrepreneurs cited the fact that there are opportunities to increase market share where some competitors are struggling and businesses can thrive when a new buyer can inject much needed capital. Especially where the banks have been unwilling to extend further credit.

In response to this demand, the Business Sale Report has launched its winding-up petitions alerts service, which gives details of businesses that have had winding-up petitions lodged against them. This is an advance warning that a business may be forced by the court to be declared insolvent. These details are published prior to the pre-arranged court date, so there is a vital window of opportunity for an investor to step in. For anyone contemplating buying a business in difficulty they would be well advised to only buy a struggling business if they understand exactly why it is in trouble. It is also imperative that the buyer know hows to turn it around. A strong track record in the troubled business’ sector is highly desirable, and the buyer should ensure they do a very thorough investigation, as struggling businesses have, in some cases, learnt to conceal the reality of their financial position.

Reader's Digest has gone into administration after talks between its US parent group and the UK pensions regulator over its UK pension fund broke down.

The negotiations concerned how to fund the firm's £125 million pension fund deficit. According to parent group the Reader's Digest Association (RDA), the pensions regulator rejected a rescue plan to settle the longstanding liability.

Administrators are now looking for investors interested in a potential business sale.

The RDA filed for bankruptcy protection last year after struggling with interest payments on a £1.4 billion debt, though it is about to emerge from the US equivalent of administration after a successful financial restructuring.

In a statement regarding the UK company's collapse, the US group confirmed: "The decision by the RDA UK board to place the UK company into an orderly insolvency process follows the recent decision by the UK pensions regulator that it would not support an agreement already reached between RDA UK, the trustees of its pension plan and the UK Pension Protection Fund to settle a longstanding pension plan liability."

The world-famous Reader's Digest magazine has just over 500,000 subscribers in the UK.

It looks like January’s cold-snap has found another victim, in the shape of retail clothing chain Ethel Austin.

Some 3,700 jobs are at risk as a result of the firm’s fall into administration, along with its sister company, homeware retailer Au Naturale.

MCR is handling the administration of the chain and spokesperson, Geoff Bouchier, stated, "the joint administrators are trading the companies in administration in the short term with a view to finding a purchaser for the businesses as a going concern.”

He added, "we are reviewing the financial position of the companies and are, at this stage, unable to rule out store closures and redundancies.”

MCR said that the chain had suffered as a result of the snow that fell in January, keeping shoppers at home and out of the stores. MCR said this had a “big impact on sales.”

This is the second time in two years that the Ethel Austin chain has fallen into administration, the first occurring in April 2008. Then, the company was sold to MKOne founder Elaine McPherson. At the time of the sale, McPherson said she was going to return the clothing chain to its “former glory.”

Administrators are seeking a buyer for a Cheshire paper business after failed efforts to keep the firm solvent.

Bridgewater Paper Company in Ellesmere Port, owned by Canadian firm AbitibiBowater, continues to operate while a buyer is found. It sells recycled paper produced in both the UK and Canada, employs 300 workers and is said to have an annual production capacity of 220,000 tonnes.

"We are continuing to trade the business as we explore all options, which include looking for a buyer for the business as a going concern," confirmed joint administrator Tom Jack from Ernst and Young.

"We are grateful for the support of all customers, employees and suppliers as we continue to satisfy customer demands."

The paper business for sale is believed to have traded at a loss for some time, leading its directors to conclude it could no longer meet its debts as they fell due.

In April last year, AbitibiBowter filed for creditor protection after US lenders turned down a proposed debt restructuring plan, announcing that it and its US and Canadian subsidiaries had filed voluntary petitions under US and Canadian bankruptcy codes.

The "merger of equals" of Abitibi-Consolidated and Bowater was completed in November 2007.

The Rock, a £220 million development in Bury, Lancashire including 60 retail units, a cinema, restaurants, bowling alleys, 170 apartments and a car park, will now be completed by property giant Hammerson after Thornfield Ventures Limited was placed into administration.

A holding company of HBOS-backed developer Thornfield Properties, Thornfield Ventures' principal development asset was the 1.6m sq ft Rock, which is set for completion in the summer.

Phil Bowers and Angus Martin of Deloitte have been appointed joint administrators to the non-trading holding company, commenting that they are working closely with all stakeholders "to support the completion of Bury and maximise the potential" of other development schemes.

Bowers, a partner in Deloitte's reorganisation services practice, added: "It has been agreed by all parties that Hammerson, a leading European development and asset management partner, has been appointed to deliver the completion and opening of Bury and will also be supporting the joint administrators in evaluating the other schemes in the portfolio."

Major retailers including Marks and Spencer, Primark, Debenhams and Next are among those to have signed up for the Bury development, mooted for completion in July.