Trading administration to preserve value in the Company’s assets and the employment of its staff
- Sector - Manufacturing
- Annual turnover - £25m
- Number of employees – 600+
The Company provided warehousing fulfillment, returns distribution and contact centre solutions across the UK and employed more than 600 people.
Following a period of expansion, the Company incurred losses for the previous six years.
Faced with a cash flow shortage and unable to source further funding, the Company was unable to meet its payroll commitments at the end of the month and an urgent solution was required.
The Company was placed into administration and as administrators, we continued to trade the business to maximise debtor receipts and market the business for sale.
This involved quickly speaking with all key customers and suppliers to gain financial support for continued trading as there was no other funding available to continue.
We identified that the business value would be maximised by dividing it into separate, natural parts and thereby achieving multiple sales.
We ensured the continued trading of the business throughout the administration, starting at a critical time of year for its high-street retail customers in the run-up to Christmas.
We successfully sold the business and certain assets, thereby preserving the employment of 95% of staff.
The outcome for the secured creditor has been much better than envisaged pre-administration and the maximum prescribed part-fund is being paid to unsecured creditors.
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