Professional Services
FRP Advisory
Full Credential Description
Must Have Limited, trading as VIP Electronic Cigarette, faced significant financial pressures due to issues at its U.S. parent company, Electronic Cigarettes International, which led to the appointment of we as administrator. Despite the company being profitable, a demand from HMRC necessitated this action. The management team submitted an offer to acquire the business, but the administrators believed that a better outcome could be achieved for creditors by continuing to trade the business while seeking a buyer.
we adopted an integrated approach, utilizing both its Corporate Finance and Restructuring Advisory teams across London and Manchester. They launched a marketing process to find a buyer for Must Have as a going concern, operating under an accelerated timetable while the business continued trading in administration. By leveraging their extensive network of potential trade and private equity buyers and conducting proprietary research, we was able to generate multiple competitive offers. This collaborative and flexible strategy ensured that all stakeholders were kept informed and that any challenges were swiftly addressed. Additionally, they worked closely with the management team to enhance the business's exit value by maintaining profitable operations during the administration period.
Ultimately, the business was sold for £11.9 million to Nicoventures Retail (UK), a subsidiary of British American Tobacco plc, which not only preserved 265 jobs but also represented a significant increase over the initial offer. The entire sale process was completed in less than six weeks, showcasing the effectiveness of we's strategic approach.