UK sourcing seller insolvent: what happens to my order?
Contact the appointed administrator, assemble your contract and payment evidence, and establish where the unfinished goods are held. Ask a solicitor to assess any ownership claim before arranging collection or paying again. Cambridge China Bridge can help check production status through its own staff in China.
Find who is handling the insolvency
Check the exact company name and registration details on your contract against its Companies House record. Ask whether it is in administration or liquidation and obtain the appointed practitioner's contact details. In administration, the administrator controls the business. Verify the contact independently before sending sensitive records or accepting payment instructions.
Write with your order reference, the unfinished work and the amount already paid. Ask for acknowledgement, the case reference and instructions for recording your claim. Confirm that the insolvent company actually sold you the goods: our guide to seller or agent roles explains that distinction.
Build a payment and order evidence pack
Keep the accepted quotation, purchase order, contract terms, invoices, specification, approved samples and correspondence together. Add bank statements or transfer confirmations showing the recipient, payment reference, currency and date. Reconcile payments against invoices and record any refunds, credits or goods already received. An invoice alone does not show that you paid it.
If you paid by bank transfer for undelivered goods, contact the practitioner to be added to the list of creditors. Ask which claim form and supporting documents they need, and what deadline applies to your case. Keep copies and delivery acknowledgements. Our supplier payment guide covers payment staging for future orders.
Identify the actual goods and their location
Request a written status report from the factory, warehouse or freight forwarder holding the order. Separate raw materials, work in progress, finished goods and tooling. Ask for quantities, dated photographs, batch or serial references, carton markings, packing lists and the storage address. Match each item to your specification and order reference.
Ask whether your batch is separated from other customers' stock, who placed the factory order and whether the factory has been paid. Record who holds the shipping documents and who is requesting money for completion, storage or release. Ask the administrator and holder to preserve the identified goods while your claim is reviewed.
Get advice before claiming ownership
Do not treat your payment receipt or a photograph of branded cartons as an ownership decision. Send an insolvency solicitor the contract, ownership clauses, payment trail and identification evidence. Ask whether you can claim the identified goods, whether any supplier ownership claim affects that assessment, and how the goods' location changes the steps needed.
Tell the administrator in writing which goods or tooling you claim and why, with supporting documents. Ask for a written response and a hold on disposal while the issue is considered. Have your solicitor distinguish an ownership claim from a claim for money owed and advise how to record each. Do not arrange collection solely on a former employee's assurance.
Agree a completion route before paying again
Insolvency does not itself remove an existing obligation to pay money you owe the seller. Before paying a disputed balance, ask your solicitor and the practitioner to clarify what remains due. Avoid paying the factory again merely because it says the UK seller never passed on your deposit.
For any proposed completion arrangement, obtain written confirmation of the contracting parties, goods covered, treatment of earlier payments, remaining work, inspection and release conditions. Ask who will handle freight and imports; see who is the importer. Cambridge China Bridge's China staff can help establish production facts for this decision; take ownership questions to your solicitor.
Frequently asked questions
Who do I contact if my sourcing seller goes bust?
Verify the company and appointed practitioner, then contact the administrator or liquidator. Send your order reference, payment evidence and an account of what remains unfinished.
Does paying a deposit mean I own the goods?
Do not assume it does. Ask a solicitor to review the contract, payment trail and evidence identifying the goods before making an ownership claim or arranging collection.
Should I pay the Chinese factory to finish my order?
First clarify earlier payments with the administrator. Obtain a written completion arrangement covering the goods, remaining work, inspection and release before agreeing another payment.
What proof should I send the administrator?
Send the contract, accepted order, invoices, payment confirmations and correspondence. Add evidence of the goods' identity, location and production status, and record refunds or deliveries already received.