Wholesale industry - case study
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Wholesale industry - case study
Cashflow review, options planning and controlled wind down of the UK largest independent bathroom wholesaler
- Sector – Wholesale
- Debt - £10m
- Turnover - £25m
- Number of employees – 100+
Situation
Introduced by a leading independent Asset Based Lender, the business was experiencing cashflow stress and a significant fall in turnover following the loss and insolvency of a key overseas customer.
Approach
Our initial work involved an independent review of historic trading, the current financial position, short and medium-term forecasts, accounting controls and a detailed analysis of stock, debtors and cash. Completed in two weeks, certain key issues were identified including a substantial funding shortfall.
Working closely with management, the agreed action plan required an urgent but planned orderly wind-down of the business and operations.
Impact
Successful sale of a freehold property, wind-down of the stockholding (including innovate Retention of Title strategy) and the collect out of a £5m debtor ledger (using the existing accounts team and a specialist agent).
Full repayment of secured lenders, dividend to private equity investor & substantial dividend to unsecured creditors of 65p in the £.
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