Company Liquidation Case Studies
Targeted Marketing Saves Manufacturing
39-year-old family business
The assets of a 39-year-old family business were bought out of provisional liquidation by a new company, enabling manufacturing to restart with potentially around 30 new jobs. After being placed in liquidation, lack of cash flow made trading impossible with regrettably, no option but for the factory to close and all staff to be made redundant. The team in Scotland generated a welcome level of interest through a targeted marketing campaign, swiftly completing a deal and avoiding major disruption to product supply. This successful outcome saw the factory reopen and new jobs created.
Guernsey based Wallace Barnaby Group was one of the largest offshore marketing and advertising agencies in the British Isles, with businesses based in Guernsey and Jersey and turnover in excess of £50m at its peak. The loss of significant media contracts brought about a decision by the parent company to put the business into voluntary liquidation. Liquidators were appointed and the Channel Islands offices closed, resulting in 29 staff redundancies. Our Guernsey and Jersey offices carried out the liquidation of Wallace Barnaby group companies in both jurisdictions.
Factoring to Avoid Liquidation
A business engaged in the manufacture and repair of steel equipment which are used predominantly in the demolition, quarrying, construction and plant hire sectors. Due to a deteriorating relationship with their bank factor, we were asked to review the business, with the bank suggesting liquidation as the only alternative. The bank was unwilling to fund certain invoices because the debtor was an agent and the goods supplied were being shipped to the end user in the Middle East. The company also had HMRC arrears of circa £100k. Our team of specialists met the director of the company who was adamant that the business had a future. We introduced a factor who was prepared to fund the invoices to the agent and release sufficient funds for the bank to be repaid and the company to continue trading and employing 8 staff. The company required a factor that was prepared to spend time understanding the issues the business faced. We worked with an independent factor who replaced the bank’s facility and work closely with the business. The bank was delighted to help the client secure alternative funding, which they felt unable to provide. The restriction in funding would have certainly led to the liquidation of the company and subsequent loss of jobs. Due to our understanding of the business and our knowledge of the market we were able to replace the bank facility and the company continues to trade.