Rescuing a dream: A Melbourne renovation company’s remarkable financial redemption

RENOVATION COMPANY - MELBOURNE

$1.5 million

OWED TO CREDITORS

100%

EMPLOYEES RETAINED

78.67%

DEBT REDUCED BY

YES

CONTINUED TRADE

The financial situation:

In Melbourne, Victoria, a home renovation company dedicated to delivering Melbourne’s finest home restoration services stood as a beacon of quality and craftsmanship.

However, behind the scenes the company faced problems due to flawed business structure and inadequate management. How did they manage to navigate through this challenging situation? Let’s delve into their story.

The company encountered obstacles that affected their day to day operations. The most pressing issue was the threat of the Australian Taxation Office (ATO) wind up notice, driven by debt exceeding $1 million.

The solution which reduced their debt from $1.5 million to $320,000

To thwart the impending ATO winding-up order, AVA Advisory helped the company to initiate a voluntary administration process. A DOCA was also meticulously crafted, resulting in a debt reduction of approximately $320,000 over 28 months with monthly installments.

Thanks to AVA Advisory’s expertise, the company started incorporating ongoing corporate advice. They brought in new business goals, revamped operations, and updated their financial strategies.

They kept things flexible by doing weekly check-ins and adjustments, making sure they could handle challenges and stay in sync with their restructuring goals.

Understanding the need to keep things shipshape in the financial department, they decided to bring in a new accounting firm. The goal? To make the financial side of things run smoother and to have better control over the company’s money matters.

These efforts had some great outcomes for the company. Not only did they continue to trade, their profits also increased and they became more flexible and responsive to market changes and challenges.

Don’t Take Our Word For It…

We understand that when your business is in financial distress, you need advisors you can truly rely on. While we are confident in our ability to deliver results, we think these words from past clients speak volumes:

Jason M

AVA advisory met us in relation to a recent legal matter. They were able to explain to us what our options were and how we could achieve them. They kept our business alive and were able to reduce our debts from over $1,000,000 to under $200,000.

Jill H

“Andrew, (who I call my guardian Andrew) constantly reassured me and I felt we were in safe hands. He and his staff never sugar coated anything, told me the best and worst outcomes and was completely honest. Thanks to the team, we are part of the 30% of businesses that come out of an Administration with a business.”

John H

In a nutshell, AVA Advisory dragged us out of the mire and enabled us to continue to trade. AVA managed to reduce our debt which allowed us to save the business, save our employees jobs and entitlements and enabled us to trade on into a stronger position.

Let’s work together to achieve these kinds of positive outcomes for your business. Get in touch today to book your free consultation.