Insolvency consultation for furniture manufacturer

insolvency consultation for furniture manufacturer

Problem

Although in existence for more than 30 years, this furniture manufacturer was finding it difficult to compete with the cheap import replacement products.

So much so, that in the last half dozen years the losses sustained by the Furniture Manufacturer necessitated the sale of the business freehold premises to allow an introduction as capital into the business in order for it to sustain its ongoing operations.

Solution

After a complete review of the business operations by Bryant & Bryant as part of their insolvency and pre-insolvency services, identifying the divisionalisation of the business and determination of the successful compared to the unsuccessful divisions, resolutions were made by the Operator to close a number of the business operations.

The sale of the sustainable operations to alternate business structures necessitated the valuation of the business operations, the financing of the business operations and the documentation of same.

With the closure of the manufacturing concern, the necessity to deal with external creditors involved the introduction of an External Administrator to allow for an orderly Administration of the old business structure, and avoid liquidation.

Outcome

The restructure allowed the family to stop the rationalisation of non-business related assets and retain the remainder of their property portfolio.  It alleviated a stressful environment.

Bryant & Bryant continues to provide ongoing commercial advice for all statutory requirements.

For more information on our Insolvency & Pre-Insolvency services, Contact us today!

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