ReSolve urges business owners to take early action - Resolve Group UK

ReSolve urges business owners to take early action

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ReSolve urges business owners to take early action

ReSolve is urging small and medium sized business owners in the UK to take early action when signs of stress begin to arise in their operations as lockdown eases.

ReSolve Founding Partner Cameron Gunn says many business owners choose to ignore financial distress in the hope that they can trade out of it, or because they fear the “stigma” of seeing a restructuring professional.

On the contrary, Cameron says that taking early and pre-emptive action means that there are a lot more options available for business owners – and liquidation is not necessarily a foregone conclusion.

During the COVID-19 pandemic ReSolve has successfully restructured a number of struggling UK businesses including:

  • A UK-based electric commercial vehicle developer which was experiencing severe cash flow problems and on the brink of insolvency
    • ReSolve advised on critical cash flow management and successfully concluded an emergency fundraise in time to save the business and secure 45 jobs.
  • Out of the Woods restaurants in West London were struggling severely as a result of lockdown
    • ReSolve negotiated a successful sale, preserving 83 jobs.
  • TM Lewin, the long-established UK professional wear retailer, faced large-scale store closures
    • ReSolve managed the restructuring process and oversaw the sale of the TM Lewin Online brand, thus converting TM Lewin into an online-only trading business.
  • Great British Chefs Ltd, the online recipes resource and cookbook seller, had been put into administration
    • ReSolve negotiated the sale of the assets of Great British Chefs within just three weeks of its appointment, allowing Great British Chefs to continue to trade.

ReSolve was founded in 2006 by Cameron Gunn and Mark Supperstone and since then has grown to become one of the UK’s leading business advisory firms for privately owned small and medium sized companies, including a number of well-established household names. With 5.9 million SMEs in the UK in 2019, amounting to more than 99% of all businesses, such companies are the backbone of the British economy.

What differentiates ReSolve from mainstream restructuring practitioners is the firm’s determination to view administration as the final option, not the only option. ReSolve will work to find other, innovative solutions which enable  a business to keep trading – sometimes in a different form –  and keep employing people, honouring its debts, and paying taxes. These solutions include advising stakeholders how best to manage dwindling cash flows; restructuring debt; selling all or part of the business at a value that satisfies its owner; and/or undertaking and completing a fundraising.

Cameron Gunn, Co-Founder and Senior Partner, said:

“There’s a stigma around seeing a restructuring professional – people regard us as the undertakers of business. Actually, we’re more like doctors. Mark and I founded ReSolve because we have a passion for helping struggling businesses make the changes necessary to survive, keep trading and protect jobs.

We come up with innovative solutions for rescuing troubled but viable businesses and we see those solutions through to a successful conclusion. Whether that’s a fundraising, equity sale or restructuring, if you want to continue to trade then we will do everything we can to find a way that enables you to do so.”

Mark Supperstone, Co-Founder and Managing Partner, added:

“Many small- to medium-sized businesses in the UK have suffered plunging revenues and tight cash flow during lockdown. Now that things are opening up again, it’s tempting for business owners to hope that they will be able to trade their way out of difficulty on a post-COVID bounce.

My advice to business owners is to act early; don’t just hope that something will turn up. The earlier you pick up the phone to us, the more options we will be able to create for you and the more likely it is that your business will survive and, eventually, thrive.”

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