Administrations rarely come out of nowhere. In most cases a combination of pressures builds over months before an administrator is appointed.
The recurring causes
Cash flow shocks, loss of a major customer, unserviceable debt, poor record keeping and director disputes top the list. External events such as rising input costs usually act as triggers rather than root causes.
Early warning signs
Watch for late filings, repeated changes of registered address, court actions and a run of creditor notices — these often appear together in the months before an appointment.