Background

Celebrity Motion Furniture Limited (CMF Ltd) was part of a wider furniture manufacturing and retail group, with operations split across the main trading entities and each business inter-dependent with the others. One of the trading entities was the main supplier of furniture to Laura Ashley. However, shortly before the Covid-19 pandemic, Laura Ashley went into Administration which put a massive and unbridgeable hole in the Group’s cash flow. Management sought advice with FRP at this time.

Action

Appointed as Administrators to five of the group’s companies following the UK’s first Covid lockdown, FRP’s Restructuring Advisory team formulated and implemented a strategy to maximise returns in a quick changing and tumultuous environment. This included reorganising manufacturing capability to ensure that CMF Ltd could operate independently of the other entities. We explored funding options, pulled together detailed forecasts, managed employee relationships (and furlough payments) and permitted manufacturing to commence again when appropriate within Covid guidelines.

Outcome

Within 6 months of appointment as Administrators, FRP successfully supported the business, enabling it to enter into a CVA in which the business was able to continue trading, maximising the return for creditors.