Sales £6m; Staff 30; Award-winning business suffering massive market fallout.
Although a winner of awards for excellence this highly profitable business suffered a huge fall in sales after 9/11 and the attendant travel slump.
Sales had fallen by 50% almost overnight, the management team took action to restructure but, too little, too late. In addition the lease was up on the company's principal place of business and dilapidations costs were due.
KSA used a CVA to restructure the balance sheet and froze around £1.25m of debt built up in 2002.
Modest investment was provided from shareholders. The losses were stemmed whilst marketing restarted and costs were reduced. KSA helped restructure the company and around 25 people were made redundant.
New management was introduced to help the two founder directors who were struggling with the stress of downsizing, relocation of premises and firefighting.
The company has since been sold to a management buy out team who have the requisite capital to rebuild the business. The CVA supervisor has been able to convert modest assets into cash and will pay a dividend to creditors when appropriate. This has avoided the consequences of liquidation meltdown of assets