AMA process, leading to a pre-pack administration sale of business and certain assets
- Sector – Gardenware
- Annual turnover - £9 m
- Number of employees – 79
The Company manufactured and wholesaled gardenware to major DIY chains and the public and employed 79 members of staff over a number of sites.
The Company had invested heavily in new manufacturing equipment and processes to on shore goods but had suffered a decline in turnover and margin immediately following that investment.
The combination of the two issues resulted in significant pressure on the Company working capital.
Following a review of the Company’s financial position and forecasts meetings were held with key stakeholders to consider the solvent restructuring options. Whilst these options were explored the pressure on the business continued and an assessment concluded that those options were not longer achievable.
The shares or assets of the business were marketed for sale however assets only offers were the only ones received. The sale process and administration were approved by the key creditors and a sale of the business was completed securing the employment of all staff.
The business and certain assets of the Company were sold by way of a pre-pack administration.
All the employees transferred to the purchasing entity thereby preserving their employment.
Significant realisations resulted in the repayment of certain secured creditor in full and large distributions to others.
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