Reviving a troubled ship: how a marine dealership and repairs business makes a remarkable turnaround

MARINE DEALERSHIP AND REPAIRS BUSINESS - WA

$1.2 million

OWED TO CREDITORS

100%

EMPLOYEES RETAINED

87%

DEBT REDUCED BY

YES

CONTINUED TRADE

The financial situation:

A well-established marine dealership and repair business in Perth, Western Australia, had long been a beloved anchor in the local maritime community.

However, the business faced a financial crisis and operational setbacks that threatened to capsize everything they had built.

The primary challenge they faced was the intense pressure from creditors, with their total debts exceeding a staggering $1.2 million. This overwhelming burden included a substantial tax debt of over $800,000 owed to the Australian Taxation Office (ATO). To make matters worse, outstanding invoices from suppliers and reduced trade exacerbated the situation, pushing the business perilously close to insolvency.

Adding urgency to the situation, the ATO had filed a Winding Up Application against them.

The solution which reduced their debt from $1.2 million to $220,000

With the help of AVA Advisory, a voluntary administration process was initiated to stave off the ATO Winding Up Application and provide a framework for restructuring and recovery.

They also developed a Deed of Company Arrangement (DOCA), which entailed a debt reduction of approximately $220,000 over a two-year period, with monthly installments.

This agreement provided much-needed relief from the mounting financial pressure. With newfound business objectives, revamped operational processes, and sound financial strategies in place, the business was able to continue trading.

The combined impact of debt reduction, improved financial management, and streamlined operations breathed new life into the business, leading to increased profits.

This success story serves as a powerful example of how effective financial restructuring and operational reevaluation, guided by AVA Advisory’s expertise, can revive a seemingly doomed enterprise. It is a testament to the resilience and determination of the business owners and the transformative power of strategic guidance.

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.