Business Recovery Specialists Saved 100 Jobs
Case Study 4 – Our Business Recovery Specialists Saved 100 Jobs Following Administration.
At Business Recovery Specialists, our aim is to help businesses that are in difficulty to recover. We identify the problems, recommend solutions and help implement the solutions. If we can do this without needing to place the business in administration, so much the better. However, sometimes administration is necessary, in which case our objective is to achieve a sale of the company and protect as many jobs as possible. This case study looks at how we did just that for a prestigious car dealership that was facing difficulties.
What problems was the company facing?
The dealership suffered badly during the last recession, with sales of new and used cars down significantly. Indeed, there were 200 cars on the forecourt with no-one coming in to buy them. Although the business was still solvent, creditor pressure and cash flow problems were mounting. A sale of the business was identified as the best solution.
However, no buyers came forward and the pressure was mounting. As a result it was decided that a pre-pack administration sale was needed. This is when we were called in by the company’s accountant.
The Outcome was Successful
Administration is not the precursor to insolvency and liquidation. It buys time for the administrator to review a business under controlled conditions, allowing the best strategy for the business and employees to be identified and implemented.
In this case, whilst keeping the major creditors fully informed, we were able to review the company’s true position and determine its actual value prior to seeking a buyer. We were successful in the search for a buyer, and a larger car dealership group purchased the business. This allowed the name to continue and, more importantly, save 100 jobs in the process.
As the referring accountant said:
“This kind of outcome is why we like working with the Business Recovery Specialists at Poppleton and Appleby. They are very knowledgeable and commercially minded, reacting quickly and always finding a commercial solution where they can.”
Contact us if your business is facing difficulties
Spotting the signs of business difficulties at an early stage is the ideal situation, as this means the issues can be identified and positive action taken before administration is necessary.
However, as this case study shows, when administration is required, we have the skills and knowledge to ensure the outcome is as good as it can be. In our experience, insolvency is not inevitable when a business starts experiencing significant difficulties, but the quicker you get in touch, the more we can do to help.