We don’t often get to shout about our successes – mostly because of the confidential nature of our work – but every now and then, a story comes along that’s too good not to share. This one’s a belter.
A few months ago, I was contacted by the director of a Midlands-based high-pressure diecasting company that was, frankly, on the ropes. The business had lost its biggest customer – over 80% of its turnover – just six months earlier. Despite the director’s best efforts to replace that revenue and slash costs to the bone, the company was out of steam and options.
Another insolvency firm had already taken a look and delivered the usual grim verdict: “Creditors’ Voluntary Liquidation.” That was it. No further thought. Just pack it in and let the chips fall.
But the director wasn’t ready to give up. He’d personally guaranteed some finance agreements on the plant and machinery, there was a Bounce Back Loan still outstanding, and other creditors circling. What he really wanted was a dignified exit: avoid liquidation, protect his personal assets, and retire without a cloud hanging over him.
That’s where we came in.
My business partner in our auctioneering venture and I went to see the business in action – and what we found was a bit of a hidden gem. The machinery was some of the most efficient we’d seen in the sector. While the business had lost its market, the equipment still had strong value – especially to the right buyer.
So we got to work.
Using our sector database and marketing channels, we ran a discreet campaign – no names, no drama – just a smart, targeted message to businesses who’d recognise the opportunity. Dozens of calls, several NDAs, and a few site visits later, we had serious interest.
The result? A local manufacturer bought nearly the entire kit at a very healthy price. Not only did that clear the outstanding finance, but it also injected cash into the company to pay off all remaining creditors – every last one.
Even better, some employees were taken on by the buyer, the factory was cleared and handed back to the landlord with no dilapidations claim, and the director – also a 50% shareholder – is walking away with a cheque in his hand and a smile on his face. He’s now planning a well-earned retirement.
And the cost of our involvement? A small upfront fee and a results-based success fee – less than the startup costs of the liquidation quote he’d been given.
The Lessons?
- Always get a second opinion. Even from me! Not all insolvency advice is created equal.
- Look at the full picture. Context matters. Assets, relationships, timing – all these things can turn a sinking ship into a sailboat.
- The right tools make all the difference. Our databases, networks, and hands-on approach created a solution no one else saw.
- Teamwork works wonders. The collaboration between Midlands Business Recovery and Asset Disposal Services delivered an outcome no single insolvency firm could achieve on its own.
If you’d like to hear more about the case from the director himself – just ask. He’ll tell you we’re brilliant. And to be fair, in this case… he’s not wrong.