Business Recovery Specialists help retailer recover
How we work at Business Recovery Specialists. Case Study 2.
It’s all very well saying that we help businesses facing difficulties recover. Whilst that is true, what’s more important is what exactly we do to help and how we help. Every case is different, requiring us to draw on the skills and expertise we have accumulated over the years. This case study looks at how our Business Recovery Specialists helped a designer retail clothing chain overcome significant problems and begin trading profitably again.
What Problems was the business facing?
After 30 years of successful trading and growth, with a number of stores in high profile cities across the UK, the business was hit hard during the last recession. At a time when they were expanding fast, swift and significant contracting of demand in the retail sector combined with escalating rent and rates obligations was a toxic cocktail.
This led to all of the familiar problems of creditor pressure, declining revenues and significant cash flow problems.
At our first meeting with the directors, a call came through to warn that the bailiffs were on their way to the Birmingham store.
This is where our knowledge and experience came into play. We were able to get a solicitor to make the necessary court application within 2 hours. This prevented the bailiffs taking action. This bought us time to use our specialists business recovery know how to restructure the business and help it recover.
How we helped this business to recover
Firstly we stabilised the financial situation by negotiating with the company’s bank, suppliers and landlords, which removed much of the most pressing creditor pressure. We then closed three of the unprofitable stores and renegotiated the leases on the remaining stores on more favourable terms.
The company and its assets were sold on a pre-pack basis. This enabled the core business to carry on trading from its 3 remaining stores and on-line. The management remained intact as did the continued support of its major supplier.
This is what the client said about our work
“The speed, honesty and professionalism with which Andy and his colleagues responded at our first meeting, set the tone for everything they did for us. They were very clear about our options for the best way to tackle the situation, very responsive and informative, and we were never left feeling in the dark or uncomfortable.”
“What they did in a very difficult situation was to enable us to maintain our business integrity and reputation. Without them, we could not have moved forwards.”
If your Business is Facing Difficulties, Get in Touch
As Business Recovery Specialists our aim is to help businesses that are facing difficulties turn their fortunes around. We aim to help tham avoid insolvency, if at all possible, and begin trading profitably again.
As this case study demonstrates, with limited time, our swift and decisive action helped save a company that had grown 30 years. Insolvency is not inevitable when a business starts experiencing significant difficulties. The quicker you get in touch, the more we can do to help.