Case Study
Playground Equipment Business
Case Study
Playground Equipment Business
I relied on Climb Business to get through a tough period and worked with the Liquidator to realise the best return for my creditors.
Winding down playtime
Close Down and Assisted Liquidation
The Situation
The company sourced and installed playground equipment. It suffered from a severe cash shortage due to poor client invoice payment cycles, low industry rates and increased competition over time. Tax debt had accumulated, and the major supplier demanded increasing payments, both strains crippled the operational capacity of the business.
The director needed to understand the options for the company and his personal liabilities. Climb Business was engaged to educate the director on all the liquidation process steps. We assisted them in closing down the business before introducing the liquidator to finalise the procedure.
The Solution
- Developed a plan to liquidate the business over a short time frame.
- Acquired a clear understanding of the asset and liability position
- Activated cash recoveries from the debtors ledger to pay down personal guaranteed secured debt.
- Communicated with key stakeholders on the outcomes sought for the company.
- Identified potentially preferential payments to creditors.
The Success
- A pacified director with a better vision on the situation, recognising and accepting the close down of their business.
- An educated director about their obligations and the processes of liquidation.
- A fully completed Statement of Affairs and Report on Company Affairs and Property.
- All employee claims paid prior to liquidation
- Some assets sold and personally secured debts paid down.
- Cash in bank account.
- Preferential payments substantiation paperwork completed.
- Reports and documentation ready for the liquidators on appointment day.
