We had traded for many years as an independent local travel agent. Several of our large long term commercial clients had moved their business in-house resulting in a loss of turnover and viability. The company had reached a position where continuing to trade potentially placed customers in transit at risk and we also had a responsibility to ensure travel bond liabilities weren’t exacerbated.
Our company accountant recommended that I speak with RMT. They had helped a number of his clients previously, but more importantly having gained experience dealing with the insolvency of a national travel provider they understood our business & key issues.
Rather than assume that the business was an immediate closure & liquidation, RMT convinced me that there was still value in the customer base, our experienced staff and commissions from uncompleted holiday bookings.
Through RMT’s Corporate Recovery and Corporate Finance databases, several interested parties reviewed the business, resulting in a successful sale to a notable national travel agency.
The company entered liquidation but my staff had been re-employed as part of the sale, there was little disruption to customers and financial calls on travel bonds personally guaranteed by me were fully mitigated. The bank was repaid and other liabilities mitigated RMT Corporate Recovery department’s professionalism and knowledge turned our position from adversity to a significantly better outcome for the creditors and my staff.
I have no hesitation recommending them to any directors who find themselves in a similar position regardless of the sector they trade in.
Managing Director – Travel Bureau Business
The Company was originally placed into Administrative Receivership with partners of a Big 4 Firm being appointed. RMT were subsequently appointed to deal with the liquidation.
As a former director and a major creditor I was immediately impressed by RMT’s ability to grasp the fundamentals of the business and implement a plan to maximise recoveries.
Unlike the Big 4 Firm, RMT utilised the director’s expertise in the complex field of film and television production. By liaising with us they used our knowledge and contacts in the industry to establish, not only, the full extent of the royalty payments due under the Distribution Agreements but also to compile a comprehensive list of titles and distributors to enable the Company’s production catalogue to be offered for sale.
RMT Recovery Team’s professionalism and understanding of the business has without doubt significantly improved the realisation of the Company’s assets and generated a better return for creditors.
I wish to express my appreciation for the way in which the RMT Recovery Team has dealt with the winding up of our affairs.
Director – Entertainment Business
Olympic Blinds was a manufacturing business with a heritage, with 40 years of trading employing 30 staff. Business was good but unfortunately I suffered a disabling accident and spent months in hospital. My Operations Director did his utmost to maintain the business but some poor commercial decisions coupled with my absence coinciding with the beginning of the recession led to issues within the business, including non payment of rent which became apparent on my return.
I asked my accountant to do a review of the financial position, and was advised to contact Mike Pott at RMT to review the options for the business. We considered whether the business could be saved and looked to reduce overheads, including negotiating with the landlord and a move to smaller premises. However, the landlord rejected our proposals and reluctantly I took the decision to put the Company into liquidation.
RMT managed the closure in a very professional manner. Having to deal with the closure of my business whilst still dealing with my illness was very stressful but RMT took control of the situation and reduced the strain significantly.
I would highly recommend the services of RMT, specifically their business recovery services, their ability to take control of a situation that felt out of control, turn it around and make it manageable. My health has improved and I feel I have a future in business that perhaps I would not have had if RMT had not become involved.
Director – Home Improvement Business
Our business started as a partnership in 1980 and traded successfully as a commercial and advertising photographer. After incorporation, we purchased new premises in North Tyneside in 1985.
For over a decade the business expanded and the premises were extended to increase capacity. Major capital investment was made to obtain digital and litho printing and the core business changed from 2000. We achieved ISO accreditation in 2006 and became regarded as one of the best high quality multi disciplined printers in the North East region.
Advances in print technology and software have allowed smaller printers to cost effectively produce high quality work with a great deal of flexibility. The sector had become very competitive and this created pressure on margins and turnover. The directors streamlined the business and injected capital, a series of bad debts and loss of two senior employees to the competition had a significant effect on trading.
We had traded for over 30 years, had a wonderfully loyal workforce but found ourselves in a very distressing position. Our accountants advised us to seek advice from RMT.
At our first meeting I was encouraged by RMT’s ability to empathise with us without compromising advice about the company’s position and our own responsibilities, even if there were matters we didn’t particularly want to hear.
RMT tried to obtain interest in the company from contacts in their own client and Corporate Finance database but the lack of response probably reflected the current printing sector. Options such as Administration and CVA were considered but were not viable in our circumstances and we took steps to commence liquidation proceedings.
Our main concern was for our staff, and we were anxious that they were dealt with sympathetically. From the outset that pressure was taken away. RMT spoke with the staff, explained how to make claims and also arranged for Job Centre Plus to attend to talk about job opportunities etc.
I am convinced that RMT’s approach and dialogue with stakeholders, has resulted in a better outcome for all those affected by the company’s liquidation.
Company Managing Director – Communications Business
I incorporated Edric Limited as a studio franchisee for a large national photographic company together with members of my family.
Edric took high quality portrait and family group photographs which were processed by the franchisor. Our product was aimed at higher income individuals and during the 2000’s sales increased rapidly and the studio operated very profitably.
In 2010 the franchisor went into administration and although the business was sold, subsequent staff reorganisation and reduction in marketing and advertising support had a huge impact on studio sales. As our products were a discretionary purchase the economic downturn exacerbated the position.
It became clear that customer acquisition could not be increased and with a number of other franchisees the franchisor decided that our territory could no longer support a franchisee studio.
We were rapidly presented with a scenario where we needed to take urgent advice to prevent the position worsening for stakeholders and creditors and also ensure that we dealt with our directors’ duties responsibly.
Our accountants advised us to speak to RMT.
From our first free consultation we were given clear advice on the company’s options and on our own responsibilities. I suspect many directors in similar circumstances find it difficult ‘to see the wood for the trees’ and RMT helped through a period which was profoundly distressing to me and members of my family. I was pleased with how quickly RMT understood the business, and although liquidation was inevitable, were able to deal quickly and professionally with all stakeholders.
Company Managing Director – Visual Communications Business
After qualifying with a Big 4 firm I held several FD positions in large private companies and a large PLC subsidiary before taking up Chief Financial Controller roles in the public and charity sectors. After a period as a lecturer at one of the UK’s leading accountancy tutors I became a consultant providing business support and accountancy services to small businesses on a part time basis.
I first met with the Corporate Recovery team at RMT when working for a local company suffering from cash flow problems and pressure from creditors, stifling an otherwise good underlying business. Following advice from RMT, the directors were able to steer through these difficulties allowing the company to survive and attract venture capital to succesfully expand its products and market.
I was then engaged by North Pennines Heritage Trust ‘NPHT’, a registered charity, as a part time financial controller. NPA was incorporated by NPHT to provide archaeology services to private and commercial clients, as well as looking after NPHT’s special interest sites.
NPA was profitable but had suffered from the cash requirements of NPHT, resulting in a lack of investment to allow expansion. Before my involvement large PAYE and VAT arrears arose which led to threat of a winding up petition being presented by HMRC.
I suggested that the directors consult RMT’s Corporate Recovery team. NPA could not avoid insolvency but RMT negotiated with HMRC to hold off the petition so the business could be marketed and sold using a ‘Pre Pack’ administration to benefit all stakeholders. It was important to avoid disruption for clients, but moreover retain the trust of a highly motivated workforce during this time.
With the assistance of the directors and RMT’s Corporate Finance team several prospective purchasers were identified.
The business and assets were sold immediately after NPA went into administration. The employment of the entire 23 staff was saved, the bank debt was paid in full, and a distribution was made to the ordinary creditors. I have been very impressed by the professionalism of RMT’s Corporate Recovery team and their ability to obtain ‘buy in’ of a disparate group of stakeholders, including NPHT trustees, to achieve a very successful outcome.
Consultant – Building Services Business