Turnaround of a struggling printing business in Leeds
Printing, as most people know, is a tough industry to be in – especially when you are competing against online and overseas printers. However, a family-run printing business in Leeds had a successful business, printing in a very niche area.
The business itself was making money and profit; however, it was weighed down with debt. Not only unsecured debt, but also the repayment on the new printing machinery that had been purchased a couple of years prior.
We appointed an Administrator, and through that process, refinanced the equipment, providing relief on monthly repayments, and negotiated a deal with the unsecured creditors which significantly reduced debt. The business is now trading from strength to strength.
Battersea-based marketing firm closes doors
We were approached by an advertising agency that needed to close its doors. The key part of this liquidation was that there were several employees who had entitlements owing (holiday pay, long service leave), and these entitlements needed to be paid as a priority. On closing the company down, there were monies owed by several clients, that was collected, which assisted in paying out the staff entitlements. The company was then closed promptly and with minimal cost.
Quick and easy liquidation for a struggling food franchise in Reading
We receive many calls from food franchisees who are struggling. This coffee franchise in Reading was no different. The husband-and-wife team simply had enough of working 16 hours a day, and not really taking a salary. Closing or liquidating the company, in this case, as in many situations in retail, was the simple part.
We placed the company into liquidation quickly to “draw a line in the sand” and close off all unsecured company debt. Luckily, in this instance, the owners were in their last month of the lease, and so there was no personal liability regarding any type of personal guarantee on the lease. We also assisted with their negotiations with the Franchisor for royalties owed, where the Directors were also Guarantors. This was successfully closed off, and now the Directors are working normal hours for a wage.
Bath Bookstore back from the brink
With books being a category that is being attacked by various technologies, including Kindle, it was no surprise when we received a call from a bookstore in Bath. However, this is no ordinary bookstore – with a fantastic loyal following and multiple book clubs.
What we discovered was that the turnover of the business was good – the issue had been some significant theft, and a poor accountant who hadn’t filed correct tax returns. This resulted in a large tax liability, and a reduction in revenue due to theft – and therefore a hole that left the business extremely exposed.
Through the administration and turnaround process, the lease rent was “frozen” to allow the business to generate revenue, and the tax office was offered a deal on monies owed. The bookstore continues to grow its audience in Bath!
Restructuring a construction company in Sale
Greenfields Advisory was contacted by the Director of a building company that had significant debt with suppliers and the tax office, but also a fleet of vehicles and stock worth over £150,000. After appointing an Administrator to the business, the assets of the business were sold over to a new entity, and a dividend was paid to the creditors of the initial business. The new construction business has gone from strength to strength, and the Director has certainly taken some key learnings on board on how to run his business correctly.