Background on Robinsons Structures Limited
Robinsons Structures Limited (RSL), a family-owned steel construction company dating back to the 1950s, was a c.£11 million turnover Company, employing 68 members of staff. The firm began facing difficulties during the Covid-19 pandemic, which had a detrimental impact on the company’s cash flow due to a shortage of supplies and an increase in steel prices.
RSL had to withdraw their credit facilities with their key suppliers due to on-going cash flow issues and performance, and HMRC issued a security deposit notice to secure future Crown debt.
How did we assist?
In June 2021, the PKF Smith Cooper Business Recovery and Restructuring team (BRR), led by partners Dean Nelson and Nick Lee, were instructed to conduct an Independent Business Review into the company’s financial position. This was with the intention of providing options going forward for the company after the removal of RSL’s credit limits with suppliers.
Having considered the options, the Directors instructed our BRR team to assist with conducting an accelerated Merger & Acquisitions (M&A) process to test the market and identify a buyer, with the goal of achieving either a share sale or sale of the business and/or its assets.
After this process, an interested party made an acceptable offer for the Company’s business and assets, which led to an Asset Purchase Agreement (APA) being prepared. The team went on to assist the Directors in filing a notice of intention to appoint an Administrator, which protects the Company for a period of 10 business days from any creditor taking enforcement action, whilst the APA was being considered.
During the M&A process period, due to issues with negotiations and subsequently agreeing terms with the landlord, two potential purchasers withdrew their respective offers, with a final third purchaser being sought and ultimately being successful in the acquisition.
A successful sale
On 22nd October 2021, a third and final NOI was filed at court with a sale of the company’s assets eventually completing on 4th November 2021, following the appointment of Dean Nelson and Nicholas Lee of PKF Smith Cooper as administrators.
The Business Recovery and Restructuring team were also supported in the administration by external parties Smith Partnership, John Pye & Sons and Naismiths Ltd, as well as Barclays Bank PLC who held a debenture over the Company’s assets.
Jobs and futures secured
With the Administration of Robinson Structures Limited, a total of 68 jobs were saved and the value of the asset realisations significantly increased, which enabled a dividend of over £1 million to be paid to HMRC in respect of their arrears.
I’m pleased to have secured a future for the business and the majority of the company’s employees. It was a difficult and stressful period of time for the directors and the company, and we are proud to have provided them with the peace of mind of a secure sale. – Dean Nelson, Business Recovery and Restructuring Partner
At PKF Smith Cooper, we do everything we can to save your business – insolvency is the final option. We work to explore every option that is available to you to deliver the best outcome for you and your business. There is no such thing as seeking advice too early – the earlier, the better. Get in touch today for a confidential, commitment-free discussion with one of our business recovery and restructuring experts.