Printer Cartridge Franchise Suffering From Competition

The Challenge

A director invested his savings to buy a retail franchise in the printer cartridge refurbishment sector, which began trading in December 2010. While initially successful, the business quickly faced a downturn. The market shifted due to improving printer technology and increased online competition, which led to a significant reduction in the price of new cartridges. This made the concept of refilling cartridges less appealing, especially for businesses, which had been a key target market. Despite the director’s extensive marketing efforts, turnover continued to fall, and the company was loss-making after its first year. The director invested more personal capital, but by June 2012, his financial position had not improved, and his health was suffering.

The Solution

The worried director contacted RMT KSA for an assessment of the business. Based on the financial information provided, it was clear that the company was no longer viable due to fundamental shifts in the market. The director, realising there was no likelihood of a turnaround, decided to call a halt to prevent further financial losses. With RMT KSA’s assistance, the appropriate documentation was prepared to place the company into voluntary liquidation.

The Results

By managing the liquidation process efficiently and bringing it to a speedy conclusion, RMT KSA helped the director end the business and prevent him from investing any more personal and family money. The director’s health recovered, and he was able to return to work in a senior marketing role, demonstrating that sometimes the best solution is to end a non-viable business in a controlled manner to preserve personal well-being and future prospects.