Two arms of West-based Top 50 chartered accountants firm Target have gone into pre-pack administration following £6m of claims relating to the collapse of UK life settlements firm Keydata Investment Services in June 2009.
Bath-based Target, which has its corporate finance arm in Bristol, is among firms being pursued by the Financial Services Compensation Scheme (FSCS) to recoup compensation paid to Keydata claimants.
Target cannot meet its obligations – hence the decision to go for a pre-pack administration. A pre-pack arranges the disposal of the whole or part of business before it enters an insolvency process with the sale taking place immediately administrators are appointed.
Target called in rival accountants PwC on Friday to organise the break-up and sale of the firm and Zelf Hussain and Rob Hunt were appointed joint administrators of Target Consulting Group and Target Consulting Limited, trading as Target Chartered Accountants.
They have been appointed to Bath, Reading and Rugby but not the London practice, Target Accountants Limited. The Rugby office has been sold back to local office management for an undisclosed sum and a similar deal at Reading is imminent.
The fate of the Bath office is unclear although a quick sale is being sought. All of the accounting function is based in Bath, plus a portion of Target Financial Management Limited. The group has a total of 197 employees with 88 based in Bath, 25 in Reading, 25 in Rugby – and 31 in Target Accountants Limited in London and currently not in administration – as well as 28 in Target Financial Management, based in all offices.
Zelf Hussain said: “Due to difficulties in meeting the group’s financial obligations, and having run out of alternative options, Target Consulting Group Limited and Target Consulting Limited have been placed into administration.We are pleased to have completed the sale of the Rugby office and are looking to secure the rapid sale of the business and assets of the Reading and Bath offices, and the share capital of Target Accountants Limited (London office) and consequently we are very keen to speak to anyone who might have an interest in acquiring all, or part, of the group.”
The FSCS imposed a £326m levy on the finance sector in January to recover the costs after Keydata failed – and so far advisers have paid £93 million while fund companies have forked out £233m.
Target Financial Management was set up in 2003 as a niche tax practice operating in Bath.
