West Midlands Bathroom Products Distributors

​​The Challenge

A Midlands-based company that distributed showers and bathroom furniture to small retailers and plumbers, faced significant financial distress. The business experienced rapid growth without sufficient capital, leaving it vulnerable. The situation was made worse when the company lost a major supplier, who then demanded the early repayment of a long-standing debt, creating a severe cash flow crisis.

The Solution

RMT KSA was brought in to assist, and a Company Voluntary Arrangement (CVA) was the chosen solution. This plan restructured approximately £300,000 of tax and unsecured creditor debt over a five-year period. To provide immediate support for the company’s tight cash flow, the owners re-mortgaged their home to inject £50,000 of new capital into the business.

The Results

Despite the directors’ initial anxiety, the creditors’ meeting had a surprising outcome: no creditors attended at all. This resulted in the CVA being approved without any issues. The business was successfully restructured, with the financial burden of the debt reduced and new capital injected, allowing it to stabilise and continue trading.