Insolvency Service deputy chief executive Graham Horne signalled the issue would be “prioritised” and rules that were introduced at the start of this year “actively policed”.
The Daily Telegraph reported that Horne told a Parliamentary hearing: “We are going to get every statement into our office and see the administrator has followed the spirit” of the rules.
The process, frequently involving the rapid sale of a business back to its original owners but free of unsecured debt, has prompted concern that suppliers have been left in the lurch.
An Association of British Insurers spokesman said: “They happen behind closed doors and there is no advance warning to unsecured creditors. The suppliers are blindly trading right up to the point of administration with these companies.
“If there was more transparency, the client could make a choice over how much they supply to the company. In the end, they could be risking their own company going under.”
Pre-packs have been used recently by retailers including USC, the fashion retailer backed by Sir Tom Hunter, and tea and coffee specialist Whittard of Chelsea.
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