Devonshire company Axminster Carpets, which can trace its roots back to 1755, entered administration in February last year. The company was brought out of insolvency in April 2013 by a consortium of private investors and in April of this year, reported turnover of £12m. Here, asset valuation firm SIA Group details its involvement in the rescue of the historic company.
SIA Group worked closely with all stakeholders of Axminster Carpets to:
• Conduct the asset valuation of carpet & yarn stock and textiles machinery & equipment;
• Value of the intellectual property, including brand name, designs, trademarks and patents;
• Collect contractual book debts;
• Provide a detailed 120 day stock exit strategy to work out the carpet & yarn stock from factory outlets should the sale of the business and assets not succeed;
• Secure the premises across multiple locations;
• Conduct a global private treaty sale campaign to sell large, high value and technical machinery, followed by a global online auction sale for remaining assets;
• Complete health and safety and environmental risk assessments.
• Key issues were identified in the stock and book debts, namely retention of title, contractual debt, warranties, poor quality stock reporting systems, lack of visibility in standard costing and margins.
• Very well-known heritage brand and largest local employer, attracting significant national media interest.
• The combination of speed and the best valuation and disposal solutions to assist in the sale of the company from administration as fast as possible.
Over £18m achieved from total asset realisations.
SIA Group’s pioneering Accelerated Inventory Realisation (AIR) programme was implemented with the sale of £1.1m of obsolete and slower moving stock, through the company’s two factory stores, and by negotiated sales to independent retailers and wholesalers. A margin of 17.1% was achieved on these sales, which was an exceptional result considering the inventory had been written off by the company.
£1.85m realised from the private treaty sale and online auction of redundant yarn production plant & machinery, which was sold to buyers globally.
“Above and beyond their excellent asset valuation and disposal skills, what absolutely shone through was how many times the SIA team would go the extra mile. This was a complicated situation, but Matt and Paul handled any and all difficulties very professionally. They worked very closely with the management team and built a first class relationship with them.”
Josh Dutfield, managing director, Axminster Carpets Limited
“SIA have a ‘can do’ attitude and would always offer assistance in any way they could. No problem was too big or too small. They were focused on getting the job done well.”
Declan McKelvey, interim CFO, Axminster Carpets Limited
“I worked very closely with Matt through the clearance of the Buckfast yarn plant and his honesty and integrity is head and shoulders above anybody I have ever dealt with in his profession. Matt got the best prices and best solutions he could ever have got. There were no quick fixes or quick wins. Absolutely first class.”
Les Tonkin, yarn divisional director, Axminster Carpets Limited
“This was a sensitive and complicated situation, but SIA managed all of the stakeholders requirements with comparative ease.”
Benjamin Wiles, joint administrator, Duff & Phelps
“What impressed me was their commerciality and drive to get the best result possible. They were on site a great deal and were meticulous in their approach. To say they were flexible and reactive would be an understatement. I recall one situation where a national TV crew arrived at the site. Paul was there immediately and managed to persuade them to leave without any fuss, which was very impressive.”
Kevin Buckett, senior manager, Duff & Phelps
“SIA was already on site and ahead of the curve when we first encountered them on this case. Speed and accuracy were the order of the day to ensure the right outcome and the SIA team met that challenge extremely well.”
Andrew Rutherford, business development director, Shawbrook Business Credit
Our structured approach to understanding and working the assets is always from the ground up.
To discuss how we can partner you in your next restructuring assignment please contact our offices:
London: +44(0)207 4984900 | firstname.lastname@example.org
Brighton: +44(0)1273 621317 | email@example.com
Bicester: +44(0)1869 365702 | firstname.lastname@example.org
Posted on 9th December 2014 by
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