Texon International

Service(s): Restructuring Services
Sector: Manufacturing

Texon is supplier and manufacturer of footwear materials, components and technologies.Many years ago it was one of the world’s largest companies.  Over time the business had shrunk in sales but had been left with an infrastructure including 18 affiliate companies, as well as agents and distributors in over 90 countries throughout the world.  It was loss making. 

The business underwent a highly leveraged secondary buy-out in the 1990s, which was funded by bondholder and bank debt. Following further declines in the European market, the business was experiencing cashflow problems and found itself in need of expert advice. 

FRP Advisory’s Restructuring Team, led by Adrian Doble, was engaged by a bondholder group to review and subsequently stabilise the business. His team carried out a worldwide assessment of operations and, following a forensic review, discovered a financial black hole and immediately initiated a rescue strategy. This involved cash management, a rapid fire strategic review of the business and a significant strengthening of management and corporate governance, including the introduction of an executive chairman from the (now) FRP panel and new key management and operations staff. 

The FRP Advisory Restructuring Team also initiated the first bondholder restructuring by way of Corporate Voluntary Arrangement. 

Stephen Bracegirdle, Chief Executive, commented:

"Adrian and his team responded with speed and professionalism. They supported the management in developing a turnaround plan whilst retaining the confidence of the shareholders, banks and major creditors."

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