What does it mean when a business is "In Administration"?

Question

What does it mean when a business is "In Administration"?

Answer 1

When a business is being managed by a senior member of staff.

Answer 2

She's waving the white flag.  The business can't afford to pay all its creditors so the company will need to liquidate its assets.  That is, turn all its assets into cash by selling them off to pay their creditors off and close down for good.

It's called going into administration because an Administrator is appointed to tidy up the lose ends.  Don't ask me who appoints the administrator I forgot.