Restructuring specialists at Quantuma have helped rescue a south west based steel company that had run into cashflow difficulties, saving 49 jobs.
Graham Randall and Mark Roach from the Bristol office of Quantuma were approached by the directors of Avon Steel Company Ltd in early November after the company experienced trading difficulties following a period of heavy losses.
Avon Steel was founded in 1981 and services the south west and south wales from its branches in Midsomer Norton and Plymouth. The family-run firm had built up to a turnover of £12 million.
Heavy losses during 2017 were compounded by a legal dispute that led to credit insurers withdrawing cover, leaving the company unable to obtain supplies of steel to satisfy customer orders.
The company engaged Graham Randall and Mark Roach from restructuring and corporate advisory specialists Quantuma to look for a buyer in early November.
After an intense initial period speaking to more than two dozen interested parties, the company entered into a brief exclusivity period with Breal Capital before completing a deal on 22 November.
Graham Randall said: “Trading conditions this year were very tough and the company very quickly found itself facing potential closure as supplies and consequently cash dried up.
“There was a very real threat that if a share sale could not be achieved the company faced administration, but the directors took action quickly and instructed Quantuma to look for a buyer in an accelerated timeframe.
He added: “There were significant levels of interest in the business and we are delighted that Breal Capital, who already own successful companies in the sector, have used their financial backing and industry expertise to act decisively in securing the future of the company and the jobs of its 49 staff.”