Nationwide Insolvency Practitioners
  • Home Page
  • About Us
  • News
  • Contact Us

Call FREE Business Rescue Advice: 0300 303 8284

Request a consultation
  • Liquidation
    • Company Liquidation
    • Creditors’ Voluntary Liquidation
    • Members’ Voluntary Liquidation
    • How Does it Work?
    • How Long Does it Take?
    • How Much Does it Cost?
  • Administration
    • Company Administration
    • Advantages and Disadvantages of Administration
    • Pre-Pack Administration Process
  • CVA
    • Company Voluntary Arrangement
  • HMRC Debts
    • HMRC Arrears
    • HMRC Time-to-Pay Arrangements
  • Winding Up Petitions
    • How Do Winding Up Petitions Work?
    • How to Stop a Winding Up Petition
  • Help Centre
  • Get a Quote
    • Liquidation Quote
    • Administration Quote
    • CVA Quote

Expert Advice 0300 303 8284

  • Free Advice

Do you need Advice, or want to close your business?

    Your data is secure
    1. Home
    2. News
    3. Our business recovery team helped a client sell their business during lockdown, saving all jobs

    Our business recovery team helped a client sell their business during lockdown, saving all jobs

    Business Rescue

    It’s always satisfying to be able to share news of how we’ve helped our business clients. With this in mind, we thought we’d give you an example of a recent case where our business recovery team has worked hard to help a business navigate this challenging time and find their ideal financial solution going forward.

    Nick Brierley, one of our Directors, shares a summary of how our team oversaw a recent company sale which helped save all existing staff jobs.

     

    How the business hit financial trouble

     

    • The client in question is a fashion e-commerce business who had been attempting to raise funds for the past two years.
    •  Sadly, due to a difficult period of trading preceding lockdown, then continuing into the early stages of lockdown (monthly web traffic dropped from around 10,000 visits to less than 1,000) they saw a significant reduction in turnover. Cash availability was simply insufficient to continue.
    • Despite the company undertaking a financial modelling exercise that factored in the available government support and detailed income forecasts, each scenario made it clear that insolvency advice was needed. Additionally, a CCJ from a creditor brought further urgency.

     

    Making contact with our team

     

    • In mid-April, the business formally engaged Cowgills to provide financial guidance on their current financial situation and available options.
    • Through a series of virtual meetings, we established that the primary value in the business at that time was their intangible assets, namely Intellectual Property Rights and the brand itself.
    • We made use of a trusted independent valuation agent to rapidly position the “business” for sale, whilst at the same time protecting the company from creditors for a period of Moratorium.

     

    The business recovery process

     

    • We contacted over 12,000 potentially interested parties to share this business opportunity, utilising the Cowgills website, our agent’s website and email lists.
    • At the same time, we engaged with the secured lenders via video conferencing and conference calls to offer them a strategy they could be satisfied with.
    • Following interest from several parties, we began negotiations and received four offers. Crucially, three of these offers were for the business assets only, excluding transfer of any current staff.

     

    Finding the right buyer

     

    • One bidder, however, made an offer not only for the business and assets, but also for transfer of the staff. In terms of the price to be paid, this offer was the second highest of the four, but it did serve to reduce creditor claims as it transferred employee liabilities.
    • It also proposed to maintain the jobs of all six staff, so our agents recommended this bid after agreeing a sales contract, with all interactions undertaken remotely.
    • The sale was completed in May, only a short while after we were appointed as Administrators.

     

    Do you need to speak to our business recovery team?

    A sale like this demonstrates that even at a time where we could not meet face-to-face with the management, staff or interested purchasers, we utilised our expertise in order to provide the best possible outcome for creditors, completing a favourable sale that also preserved the jobs of all existing staff members.

    If you would like any further financial information or advice in this area, please do not hesitate to contact us directly by emailing enquiries@theinsolvencyexperts.co.uk calling 0300 303 8284 or visiting our Request a Quote page.

    Categories

    • Bankruptcy
    • Business Rescue
    • COVID-19 Advice
    • Debt Advice
    • Frequently Asked Questions
    • Insolvency
    • Latest News
    • Liquidation

    Accreditations

    Chat with us

    Our Costs

    At the Insolvency Experts we think that our service offers excellent value for money. Depending on your circumstances, our services can even end up being effectively free of charge.


    Get a quote
    Get free advice

    © The Insolvency Experts 2020

    The Insolvency Experts is the trading name of Cowgill Holloway LLP registered at Regency House, 45-53 Chorley New Road, Bolton BL1 4QR and registered in England and Wales with registered number OC316195 with offices in Bolton and Manchester.

    Legal

    • Privacy Policy
    • Site Map
    • Terms & Conditions

    Call us now

    0300 303 8284