Safe Hands falls into administration

Safe Hands has collapsed into administration after a period of “severe financial challenges”, which left the business “unsustainable” to continue trading in its current form. The pre-paid funeral plan provider said it has ceased to trade and will not be accepting any new customers, but will help current plan holders with contingency funeral planning services with the assistance of Dignity, who has agreed to work with the administrators to temporarily provide existing customers with funeral planning services for a period of 14 days. It comes as the group appointed Nedim Ailyan and Ben Stanyon from FRP Advisory as joint administrators, who will now “explore possible solutions including the possibility of the rescue of the business with alternative funeral providers”. Safe Hands assured customers that a dedicated UK based customer service team has been established by the administrators to help people with any questions they may have in respect of the administration, the defined role of Dignity, the impact of the administration on their plan and any potential return of money invested. The company said it first entered financial difficulty due to a combination of factors, some of which were linked to the Covid-19 pandemic. It noted that the value of its assets is considered to be “significantly lower” than its liabilities, meaning the company is insolvent. In a statement, it said: “The administrators will be conducting a detailed investigation into the failure of the business, including the reasons behind it and the conduct of the company’s directors in due course. Until this process has been completed, the administrators are unable to comment further.” Ailyan said: “Safe Hands Plans is no longer in a position to continue trading as a result of the administration. Our immediate focus has been to secure an interim funeral services provision with Dignity for the next 14 days to ensure that any plan holders that pass away are cared for whilst we seek to find a longer-term solution. “As joint administrators, we have been appointed by the court and will undertake a detailed statutory investigation of the financial position of the business and the events leading to the insolvency. This will support our work as we progress towards realising the company’s assets to make returns to creditors.” He added: “Regrettably, the administration means the company is not in a position to issue refunds at this time. We appreciate how upsetting this period of uncertainty will be for Safe Hands Plans’ customers and their families. “We will contact all plan holders, and personal representatives of any deceased plan holders, to outline the process for registering a claim as part of the administration.”