Overview:
Exigen completed the sale of The Supplies House Limited, an Enfield-based wholesale distributor of household cleaning products, securing the future of 15 employees. Established in 1985, the company supplied some of the UK’s largest contract cleaning businesses and generated approximately £3.5 million in turnover in 2017.
Financial Challenges:
The business faced financial difficulties following a significant bad debt and the renegotiation of one of its major contracts, which reduced profit margins. Increasing price competition in the market further impacted trading performance and led to a loss of market share.
With the company unable to recover, the Directors sought professional support, and Simon and Daniel Plant of Exigen were appointed Joint Administrators on 7 November 2018.
Simon Plant, Director of Exigen Group, commented:
“This case highlights the importance of seeking turnaround advice early. By acting before the business’s position deteriorated further, we were able to preserve goodwill, secure a buyer, and protect jobs. The company’s property interest is due to be sold in due course, completing the process.”
Outcome:
Following a marketing and valuation process, a sale of the business and certain assets was completed on 15 November 2018 to Shout Supplies Limited. The transaction safeguarded all 15 roles and ensured the continuation of customer relationships built up over many years.