The business is a market-leading milkshake bar with 55 owned and franchised stores across the UK and a small overseas presence. From establishment in 1999, the company grew to a £4.6m turnover business.
Due to the downturn in the economy, the decline in the retail market and lack of available equity investment, the business had to be restructured via an immediate sale out of Administration to exit loss-making outlets.
Our team of restructuring specialists advised the company and the Bank pre-appointment, and involved our Corporate Finance team in exploring accelerated mergers and acquisitions (AMA) options. The next stage was to negotiate with interested parties for a sale through Administration and assist the directors with pre-Administration trading and control of the overdraft.
This was a complex transaction with numerous challenges which managed a successful sale that subsequently saved the outlets. Predictable challenges included the need to resolve a sale with competing purchasers against an extremely pressing timescale before the Notice of Intention to Appoint lapsed.
We managed to preserve the goodwill of the trading business, and manage the landlords, while managing the directors’ own objectives vis-à-vis the IPR being owned outside of the Bank’s security against their personal guarantee position which complicated the eventual sale
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 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. We consequently saved all viable parts of the business including 30 jobs, a large network of 750 florists and the entire customer base.
One 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. The business continued trading without a break, saving all 245 jobs at a time of increasing unemployment.
Our team in the North West were appointed Joint Administrators of Cloggs, an online branded footwear retailer, after it was placed into Administration.
We negotiated the pre-pack deal with JD Sports, which resulted in the successful sale of the business and assets, and securing all employees jobs.
KC Retail Limited t/a Route One, a chain of around 13 urban clothing retail units across the UK. The pre-pack was part of a restructure, whereby the purchaser continued operating approximately half of the units which were profitable, whilst continuing with its online operations. Route One continues to be a well established brand.
We were appointed Administrators of Nachtmann (UK) Limited that traded from 14 sites across the UK selling giftware, house ware and lead crystal products, mainly from retail outlet sits. The sites were successfully traded out to maximise stock values in the absence of a going concern.
Art, the Scottish based poster, print and frames retailer which had a number of shops throughout the UK, was placed into Administration following a dip in turnover. Following an initial assessment of the company, as Administrators we decided to allow trading to continue in order to find a buyer.
Following a period of marketing we successfully sold the assets and goodwill of the business, which should result in a significant dividend to ordinary creditors. This resulted in the reopening of 20 of the 30 retail outlets. The purchaser is also negotiating to reopen the remaining stores.
Appointed Administrator of Mostyn’s, a £7 million turnover curtain and soft furnishings retail chain that employed 128 staff across it’s 35 retail and manufacturing outlets.
Mostyn’s is a very well established business, however despite a solid underlying business and sales, difficult trading conditions together with the costs of dealing with certain historical problems including onerous property leases, resulted in the company being put into Administration.
A sale was reached following a six-week intensive sale process, which successfully preserved the business as a going concern.
More than 40 jobs were saved by our team when appointed Administrators to £24m turnover wines and spirits wholesaler, Morecambe Bay Wines and Spirits Co, following the sale of the business and assets.
The company sought our help after cash flow difficulties caused by increases in debtors and stock, and the loss of trade credit from its largest supplier, left it unable to pay its debts.