Superloos was the leading supplier in event shower and toilet facilities, their clients covered a variety of sectors including events, county shows, private schools, festivals, Royal occasions, weddings and parties.

The challenge

When the pandemic hit in March 2020, the company’s income stream collapsed and a lack of reserve funds caused the directors to instruct their accountants to prepare a 6 month cash flow forecast. This highlighted that even with furlough support, the company would need to borrow in the region of £250k to avoid breaching their current lending facility.

It transpired that the company’s performance over the previous 18 month period was not particularly strong and the directors were uncertain about borrowing the significant sums required to continue trading. As a result, the company instructed One80 to provide advice on their options.

The solution

From our initial review, it was clear the company was insolvent and would imminently breach its current lending facility resulting in the business being unable to settle operating costs. In order to preserve the value of the business, it was decided that an administration was the appropriate solution. This would afford the company protection from its creditors whilst the business and assets were marketed for sale and was the obvious way to maximise realisations for all stakeholders.

In the lead-up to our appointment, independent agents were instructed to undertake a valuation of the company’s business and assets and commence a marketing campaign the sell the business as a going concern.

At the time of our appointment, the UK was in the middle of its first lockdown and it was uncertain when this would end. Following formal appointment, a number of parties expressed an interest in purchasing the assets of the company but due to the uncertain market conditions at the time, no buyer was willing to purchase the business as a going concern and as a result, the focus moved to achieving an augmented sale price for the assets.