Geared up for recovery
We have recently successfully worked with a vehicle repair company, and have helped it to save 23 jobs and to stay in business.
The business approached us after looking at our website and deciding that Cranfield looked highly professional and had the expertise necessary to help them through the recovery process.
Problems had arisen as a result of the roadside recovery arm of the business sustaining losses which were pulling down the repair side.
Cranfield helped the business to explore several potential solutions. It was decided that the best way forward was to use a pre-pack Administration to ensure continuity of trade. Cranfield then looked for interested parties, while the directors worked on their own business plan and made arrangements with a factoring company to provide the working capital required if they were successful in acquiring the business from the Administrator.
After about a week of trying to find a buyer for the business, no offers had been made which allowed a sale to the former directors at a value recommended by independent agents. Not only has this saved all of the jobs, but it has renewed the confidence of the directors that the business, without the recovery side, will be around in the future to serve the local community.
The finance director said: “After first speaking to Tony Mitchell straight away we both felt that here was somebody who could really help us and right from the start of his involvement we felt the burden of the pressure ease. Although Administration was our least favoured option, it has allowed us a fresh start and we are confident about the future.”
This is one of a number of examples of local businesses being helped to choose the right path for them with the backing of Cranfield’s expertise. It made the whole process for the company less stressful, and ensured that the company had a future, and, importantly, safeguarded jobs.
We would be happy to talk to any of your clients who are unsure about the next steps they need to take if their business is struggling. Ring us on 024 7655 3700 for further information.
