Project Haulage: Administration
“Ensuring customers continue to receive trusted servicve"Find out more
In December 2023, pallet distribution and warehousing firm WH Barley made the difficult decision to go into administration. One of Milton Keynes’ oldest companies, the family-run business had been an industry leader for 40 years, so why did the company fail? And how did FTS Recovery help it navigate the choppy waters of company administration?
why did wh barley become insolvent?
Industry-wide financial challenges and cost pressures finally brought the company to breaking point.
The cost-of-living crisis meant fewer goods were being transported and freight volumes had dropped by up to 15%. With supplier costs rising faster than inflation, profits had been meagre and the company was relying on increased demand and uplift to sales contract prices negotiated, which unfortunately, were not able to be achieved in the timeframe available given the lack of working capital.
why was administration the right call?
We reviewed the company’s financial records, assets and business strategies, exhausting all options for rescuing WH Barley before recommending administration as the company’s best option.
By negotiating to sell a portion of the business and its contracts to their competitor, LinkLine, we were able to ensure customers continued to receive the trusted service they needed. In addition and within a relatively short time frame over a combination of the pre and post appointment period, we were also able to successfully work alongside the Company’s secured lender. This work included monitoring cash flow and critical payments in addition to assisting with debtor collection reconciliation. Within a few weeks of our appointment the lender had cleared down its indebtedness in full, not only protecting its own position but also mitigating any personal guarantee exposure of the Board to the lender.