The new year is set to kick-off with a raft of high profile companies changing hands. Top accountancy firms are already believed to be working on over a dozen controversial pre-pack deals, a number of which are in the retail sector.

Pre-packaged administrations enable a company to prepare for administration and to swiftly be bought by new owners. These new owners can be the directors of the former company, with reduced liabilities which often leaves creditors out of pocket.

Deloitte and PricewaterhouseCoopers are thought the be among a handful of accountancy firms working on a number of administrations already, some of which are thought to be pre-packs. Over the weekend Begbies Traynor, the insolvency expert, predicted that up to 15 chains will collapse by mid-January. Retailers have had a terrible December. Sales have fallen sharply and the chains are due to pay their quarterly rent bills at the end of this week. Many are expected to fail.

Pre-packs have been criticised for giving the impression of a company failing one day and then operating the next. New rules come into effect on January 1 to make the process more transparent. In future the administrator of a pre-pack will have to reveal to creditors information such as how they were appointed and any connection between the purchaser and the directors, shareholders or secured creditors of the company.

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