Financial Advisory
Forvismazars
Full Credential Description
The case study focuses on the challenges faced by the UKs largest independent bathroom wholesaler, which was experiencing significant cashflow stress and a decline in turnover due to the insolvency of a key overseas customer. With debts amounting to £10 million and a turnover of £25 million, the company had over 100 employees and required immediate intervention. The approach taken involved a comprehensive review of the companys historical trading, current financial position, and forecasts, alongside an analysis of accounting controls, stock, and debtors. This assessment, completed within two weeks, revealed a substantial funding shortfall. In collaboration with the management team, a strategic action plan was developed that necessitated an urgent yet orderly wind-down of the business operations. The impact of the intervention was significant. The team successfully facilitated the sale of a freehold property and implemented an innovative Retention of Title strategy to manage the wind-down of stock. Additionally, they oversaw the collection of a £5 million debtor ledger, utilizing both the existing accounts team and a specialist agent. As a result, the secured lenders were fully repaid, a dividend was distributed to the private equity investor, and unsecured creditors received a substantial dividend of 65 pence in the pound.