Case Studies

Case Study: Coventry City of Culture Trust administration

Coventry’s year as the UK City of Culture was run by Coventry City of Culture Trust, a registered charity and company limited by guarantee.

The trust had planned a three-year legacy arts and culture programme to ensure a long-lasting benefit for the local community, including The Reel Store digital art gallery, and received government funding as well as a number of grants to support the its activities.

Case Study: Liquidation of outdoor equipment retailer produces better-than-expected returns to creditors

Background

The directors of a company selling outdoor equipment approached Armstrong Watson for advice after experiencing financial problems. The company sold goods from two shops and online. The increase in UK-based tourism during the months of restricted travel due to Covid-19 led to a period of healthy profits.

Case Study: Pre-liquidation sale of assets by directors

Background

Gone South Limited operated a number of bars in the Leeds and Harrogate areas. It had always been profitable apart from the two years when hospitality was heavily impacted by the Covid-19 pandemic.

The company managed to improve its performance post pandemic but unfortunately a number of connected companies entered administration in early 2024. This resulted in the company’s bank putting it on notice of the intention to enforce a cross-company guarantee, leaving Gone South Ltd unable to meet its debt repayment obligations.

Case Study: Exit from administration via a Company Voluntary Arrangement (CVA) to facilitate a company restructure

Our Restructuring and Insolvency team advised that a Company Voluntary Arrangement (CVA) provided an opportunity for this trading company to avoid being dissolved, allowing the possibility of it trading again in the future. It also provided a better outcome for the creditors involved.

Case Study: Administration sale saves business and 26 jobs

Background

Ebor Concretes came into a period of difficulty in 2021 and recognising it needed support before it was too late, its director turned to Armstrong Watson’s Restructuring and Insolvency team.

Partners Rob Adamson and Mike Kienlen were engaged to assist with an accelerated sale of the business through an administration on 17 November 2021.

Case Study: Solvent liquidation - Group of companies

Background 

An existing client of Armstrong Watson was planning to sell their business and had been approached by a competitor with a significant offer for the trade and business. 

They were keen to ensure that the potential return of the capital back to members – all of which were family – was maximised and engaged the services of our Restructuring and Insolvency Team and Tax department to assist.  

Case Study: Project Varnish - Managed wind-down using administration

Armstrong Watson were instructed to assist with the closure of a double glazing business following the settlement of a dispute. The business had been assessing its options due to the nature of the dispute, and was looking at rebranding to move forward. The way forward, including its potential downsides, had been discussed with employees and sales consultants and, following this meeting, many of the self-employed sales consultants took the decision to leave the business.

Case Study: Project Diamond - Sale of business through pre-pack administration

Project Diamond was a company that dealt with IT infrastructure which had encountered some cash flow difficulties, such that the director did not want to continue with the business. However, whilst he no longer wanted to be involved with the management of the business, it was felt that there was a viable business if the historic debt could be dealt with. Accordingly, Armstrong Watson were engaged to assist the director in trying to find a sale of the business through a “pre-pack” Administration.

Case Study: Project Monitor

Advice and support results in additional funding and continued success of the business

Background

Armstrong Watson were approached by a lender as they had concerns about one of its client’s viability. They wanted Armstrong Watson to review the Company’s current position and to provide advice as to the viability of the business going forward. 

Case Study: Compromise Agreements and CVA Offers Lifeline for Business

Background

The Company was significantly geared with indebtedness of over £4m between three banks, with all three having security over the Company’s assets.  There was an inter-creditor agreement between the banks resulting in one of the lenders having priority over the others. 

The senior secured lender had concerns regarding the Company’s viability and had moved the Company into its special situations unit and had instructed an insolvency practitioner with a view to them taking steps to place the Company into Administration.