Club Closing - paying wages

23airborne

A local Club is about to shut with substantial debts, the Club is a limited business

Can the Club pay its staff wages, holiday pay, and redundancies before informing other creditors?

I suppose I am asking if employees can be classed as 'preferential creditors'

getmore4less

They are preferencial creditors for some of the monies due.

eg https://www.pwc.co.uk/services/business-recovery/administrations/brs-admin-faq.html

Preferential creditors primarily consist of employees for arrears of wages, accrued holiday pay, unpaid contributions to occupational pension schemes and state scheme premiums, all within certain limits. Preferential creditors rank ahead of all other creditors when realisations are achieved from assets where there is no fixed charge registered.

23airborne

Many thanks for your reply

I will tell those concerned to go ahead and pay staff first.