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. The business had a debt of £10 million and a turnover of £25 million, with over 100 employees. To address these issues, an independent review was conducted, analyzing the companys historic trading, current financial position, and forecasts, as well as accounting controls and a detailed examination of stock, debtors, and cash. This review, completed in two weeks, revealed a substantial funding shortfall. In collaboration with the management team, a strategic action plan was developed that involved an urgent yet orderly wind-down of the business operations. The impact of the implemented plan was significant. The company successfully sold a freehold property, managed the wind-down of stock through an innovative Retention of Title strategy, and collected a £5 million debtor ledger with the help of the existing accounts team and a specialist agent. As a result, the secured lenders were fully repaid, and there was a dividend distribution to the private equity investor, along with a substantial dividend of 65 pence in the pound to unsecured creditors.