The business was established over 100 years ago but in recent years there had been a steady decline in sales that had seriously impacted profits. The directors were nearing retirement, were no longer as focused on the business priorities and unable to manage the company through a turnaround.
There was an urgent need to downsize the business, reduce overheads and introduce fresh management.
We strengthened the management team with the introduction of a turnaround interim manager from our T-IM network. With a fresh pair of eyes he re-focused the operation, sought out different markets and introduced new products that utilised the skilled workforce. The business relocated to a smaller premises owned by the same landlord freeing up the original site for redevelopment.
The creditor position was held steady through a four year CVA and with profitability restored made contributions into the voluntary arrangement which paid 40 pence in the pound to creditors.
The directors wanted out and were ready to fold the business but also wanted to look after the long standing employees. This type of situation usually ends in liquidation and a break up and most insolvency practitioners would not think further than that. The appointment of a turnaround manager from our T-IM network breathed new life into the company and with the creditors’ arrears on hold through the CVA and ongoing support from the external investor we rescued the business.