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Our team assists a range of companies from SMEs to large corporates. Examples of our positive involvement can be seen in the case studies below.

Written by Keith Tully


Keith Tully - Managing Director

Keith Tully
Partner

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Knowing you are dealing with a reputable and regulated company will help ease your mind when deciding who to entrust with your company problems. With over 400 staff and 35 offices nationwide, we are well-established and perfectly placed to support company directors, owners and shareholders. View some of our case studies below.
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If you are interested in reading case studies about specific corporate recovery solutions we delivered, then please click on one of the links below or you will see a list of 'all' case studies below.

SUCCESSFUL SALE SAVES 21 JOBS - The company was an optical lens manufacturing business in the North of England who supplied opticians across the UK. Although a fundamentally sound business, the company had suffered as a direct result of the downturn in consumer spending.  Following our appointments, our administrators continued to trade the business, fulfilling all customer orders. 

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After an accelerated sale process and marketing of the business across the UK, the business was sold to one of the founding directors in a deal which saved 21 jobs.
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SUCCESSFUL SALE FOLLOWING ADMINISTRATION - Our administrators of a local tourist attraction on Eastbourne seafront have achieved its sale after many months of protracted negotiations. A number of early expressions of interest unfortunately failed to materialise and the park stayed closed for a long period.  The team worked hard with the council and other parties to secure a new tenant for the park. 

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The eventual deal saw the new company take a lease which also pays rent arrears to the council.  The attraction reopened with new activities that will provide a good draw for tourists.
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RESTAURANT GROUP RETURNS TO FOUNDER - Our team in Scotland completed a deal for the original founder of a chain of restaurants which were sold five years ago, buying back the group and saving 63 jobs. A well known restaurateur and his wife started the business over 21 years ago but sold the group and moved to a new venture. The restaurants ran into problems under the new owners and we were duly appointed as joint administrators.

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With a strong brand and loyal following in the region, it was simply too attractive a proposition for the previous owner to ignore.
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SUCCESSFUL SALE SAVES BUILDING JOBS - A building firm had grown very rapidly from a turnover of £700,000 to £5 million. However, although they had profitable contracts moving to completion, they did not have sufficient capital and cash reserves to fund four concurrent contracts that were making a loss.

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We were instructed as administrators and, having established that over-trading had caused the firm’s difficulties, we were able to find a buyer with sufficient resources to fund the business post-sale, saving 20 jobs.
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PRE-PACK SALE OF FLOWER BUSINESS - A flower business was placed into administration after reporting a loss at the end of the financial year although still generating sizeable revenue, having substantial assets and a considerable customer base.  Our corporate recovery team was able to broker a pre-pack sale to a home shopping group; primarily testing the marketing with the full support of the funders while the business was still solvent. 

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We consequently saved all viable parts of the business including 30 jobs, a large network of 750 florists and the entire customer base.
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245 JOBS SAVED BY PRE-PACK ADMINISTRATIONOne of the UK’s largest mobile phone retailers experienced a cash crisis after aborting the purchase of a large number of extra retail outlets. This was compounded by borrowing conditions, which suddenly worsened.  With 245 jobs and 75 outlets at stake, our team successfully orchestrated a complex ‘pre-pack’ administration, whereby the company was placed into administration while its assets were simultaneously sold to a new company.

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 The business continued trading without a break, saving all 245 jobs at a time of increasing unemployment.
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PRE-PACK SALE OF CONVEYANCING PRACTICEA property conveyancing practice sold its traditional commercial and private client business that employed around 40 staff, to another practice. Following this, the practice experienced problems when a major provider of remortgage work reduced its panel of legal firms and withdrew its current instructions of about 3,550.

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Our team of administrators was successful in pre-packaging the sale of the remaining practice to a number of other firms, preserving a proportion of jobs and ensuring that the interests of the firm’s clients were looked after on an ongoing basis.
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MANAGEMENT SAVE BUSINESS IN PRE-PACK SALE - A granite and stone business was placed into administration following a change in its business model which brought a host of problems to its operations and, coupled with poor trading conditions, resulted in a massive downturn in sales.  Our team of specialists were able to broker a pre-pack sale to the existing management. 

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Without this deal the financial situation of the business was such that it would have ceased trading due to the lack of new orders and liquidity problems. The deal saved 21 jobs.
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 RESTAURANT GROUP SAVED BY A CVA - Following considerable business expenditure just before the recession, a group of restaurants were then hit by the economic downturn. The company experienced significant trading losses and faced substantial arrears, including HMRC. Our team of corporate recovery experts proposed a Company Voluntary Arrangement (CVA) which was subsequently approved by creditors.

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Concessions made for the duration of one year, particularly by landlords, ensured all seven restaurants continued trading and saved 50 jobs.
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SUCCESSFUL SALE OF GOLF CLUB A golf club in the North of England ran into financial difficulties due to the impact of the economic downturn. We initially supervised a Company Voluntary Arrangement (CVA), based upon selling the course to repay creditors, allowing the business to continue trading while a new owner was sought.

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The business and assets were then sold. Under the new ownership, the course remained open and existing memberships honoured.
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HIGH PROFILE RESTAURANT ENTERS A CVA - Operators of a restaurant in London went into administration on expiry of the lease and negotiations with the landlord failed. Rent over £1m p.a and a large dilapidation claim made trading unprofitable. We then handled the administration: trading ceased and approximately 100 staff became redundant.

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The company exited administration and entered into a Company Voluntary Arrangement and subsequently opened a restaurant in new premises.
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MEMBER VOLUNTARY LIQUIDATION (MVL) CURES CORPORATE AMNESIA - When a whole company in the engineering sector went into administration it became apparent that there were a number of companies that the management team were unclear about, a phenomenon commonly known as ‘corporate memory loss'. Despite being little more than empty shells, the companies had remained part of the group for so long that no one involved in the group was clear about the reasons for their continued existence. Nevertheless, the dormant companies required costly maintenance in the form of filing accounts and other corporate administration, as well as providing a confusing overall picture of the group’s structure.

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Once those companies had been identified our team of specialists undertook MVLs to tidy up the group’s structure, saving costs and streamlining the entire engineering group.
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CREDITORS VOLUNTARY LIQUIDATION (CVL) FOR LARGE SCALE PRINTERA London-based large-scale printer was given a cash payment to move from its site by the London Development Agency (LDA), making way for London’s 2012 Olympic Park.  After relocating, the firm experienced financial problems due to a decline in the printing sector, a large extraction of money and increased pressure from creditors. The bank then took the decision to appoint us as administrators.

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Our team secured the site, starting investigations into the company including analysis of assets and liabilities. One hundred staff were made redundant. Our investigations continue but proceedings are commencing against the former company officers and associated parties to return the funds to the firm.
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LIQUIDATION OF FIVE STAR BUILDING MAINTENANCE BUSINESS - Following a restructure, a national building maintenance group, with over 550 staff over five sites, suffered from delayed payments from key customers and suppliers’ refusal to go on trading after credit insurance was removed on key trade creditors.

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As Administrators, we worked closely with customers and former employees to ensure continuity of employment, where possible. Transfer of the contract to new service providers secured new jobs for employees, reduced employee claims, enhanced dividend prospects for remaining creditors and lessened disruption for customers, improving results from outstanding contractual debtors.
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VOLUNTARY LIQUIDATION OF OFFSHORE MARKETING AGENCY - Our team of liquidators were appointed to one of the largest offshore marketing and advertising agencies. The agency, based in Guernsey, had a turnover in excess of £50m at its peak and 29 staff. The loss of significant media contracts brought about a decision by the parent company to put the business into voluntary liquidation.

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Following our appointment, the Channel Island offices were closed, resulting in staff redundancies.

 

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RUGBY CLUB FACED WINDING UP PETITION FROM HMRC - A Yorkshire rugby league football club faced a winding up petition from HMRC. Attempts by the club and the Rugby League to secure funding and a repayment agreement with the Crown both failed: the remaining options were winding up or administration.   We were appointed joint administrators and immediately secured a sale of the business and assets to a consortium of local businessmen who are fans of the club. 

 

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As well as saving the club, the deal secured the future of the playing squad and staff at the ground..
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VALUE CLOTHING COMPANY RESCUED FOLLOWING HMRC PETITION - A Yorkshire-based value clothing company was sold by our team after the long established chain fell victim to the retail sector downturn. Moving quickly, they secured a buyer three days after appointment. HMRC had issued a winding up petition but liquidation would not be the best outcome, halting trade, losing goodwill and increasing preferential creditors through significant redundancies.  Administration enhanced goodwill, ensured customer continuity and retaining most staff. 
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This prompt ‘going concern’ sale allowed 49 stores in leasehold premises to go on trading, protecting over 240 jobs and minimising creditor claims.
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CARE HOME SOLD OUT OF LIQUIDATION FOLLOWING UNPAID TAX BILL - A St Helens care home which faced being wound up over an unpaid tax bill was sold out of liquidation. The deal has safeguarded 17 jobs and the home's 16 residents. The care home had been faced with a winding up petition from HMRC, which would have seen it shut down immediately.  Our team of liquidators only became involved after the petition had been filed, which gave us little time to find a sale and plan a future for the business before its bankers froze its account. 

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The business entered a Creditors Voluntary Liquidation (CVL) and HMRC agreed not to proceed with the winding up petition.
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NEW INVOICE FINANCIER INCREASED FUNDING LEVELS - A property maintenance and shop-fitting business with annual sales in the region of £750,000. Despite the challenging economic climate they had a very strong forward order book. The business had used a bank-owned invoice financier but the levels of finance generated were inadequate. There were some issues from a previous business caused by a falling out between directors which led to claim and counter claim along with HMRC arrears.  With our help, we were able to give the incoming invoice financier comfort as to the nature and validity of the claims and make suggestions as to how the HMRC position could be best resolved. 

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The outcome was that the new invoice financier provided funding levels materially in excess of those provided by the previous lender.
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SECURED LONG TERM FUTURE FOR TEXTILE MANUFACTURER - A textile manufacturer faced uncertainty over future funding lines, due to its existing bank-owned factors unwillingness to continue funding the export ledger. They were rapidly reducing their exposure to the business, which was causing a cashflow headache.  Through our continual dealings, good reputation and strong relationships with the factoring and invoice discounting community, we were able to quickly identify an independent factor who was keen to work with the firm and partner the business.

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Our team presented two alternative recommendations to the directors and with our help a £500,000 CID facility was offered which secured their long term future.
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ASSISTING AN AEROSPACE COMPANY TO SOURCE A NEW LENDER - The existing lender of an aerospace component manufacturer perceived an accounting change as a breach of trust and requested our assistance in managing the business away.  Our team met with the director and it became clear that the “breach” was an accounting adjustment which should have been disclosed, but wasn’t.  The business was well run and easily factorable. Our specialists introduced another bank lender who understood the reasoning behind the breach and, once this was rectified, provided a very competitive facility.

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Due to banking procedures an otherwise good client needed to find a new lender. Without our help they would have been overwhelmed by too many, and widely differing, offers. We were able to find them the most suitable lender.
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Keith Tully

Author
Keith Tully
Partner

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

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