Supermarket Business Debt Solution

Saved properties & paid off $1 million total debt of a large independent supermarket

LARGE INDEPENDENT SUPERMARKET – WA

$437,000

OWED TO CREDITORS

100%

EMPLOYEES RETAINED

41%

DEBT REDUCED BY

YES

CONTINUED TRADE

The financial situation:

This business came to us with an average annual turnover of around $10m and two commercial properties. They owed a total of $437,000 to unsecured creditors, including a tax debt of $312,000. They had received a winding up application from the ATO and faced enormous pressure from a major bank to sell not just their two commercial properties, but also the company owner’s personal property to pay out their bank loan.
 

The solution which saw creditors paid and the company continue to trade:

AVA Advisory worked with the client for two years until the company was back on its feet. We placed the company into voluntary administration and through this process, we were able to negotiate with creditors to repay the debt over a 12 month period, which reduced the monthly contributions to approximately $20,000. This meant that not only did the company have a viable future with a relatively unaffected cash flow due to a lower repayment amount, it also meant that the creditor (who faced losing the entire loan property amount should the company go under) also made their money back.

We also secured a stable, debt-free and profitable future for the business by:

facilitating negotiations with one of the company’s major suppliers who we discovered had been overcharging them for close to 8 years.
recovering $1.05 million during the administration process through close examination of another of the company’s creditors
working with the financial ombudsman to keep the major bank away for 12 months, allowing us to assist in the refinancing of the company property – which the client didn’t need to sell as a result.
successfully paying off close to $1 million of debt, including the $437k owed to unsecured creditors. Priority (employee) creditors were owed $45k and secured creditors $520,000. The cost to the company was only $240,000 as a result of negotiations.
After working closely with the business owners, we left the company in a far better financial situation than we found it in. Following our involvement, the ongoing structure and operations of the company are smoother and more financially capable than ever before.

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.

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