Case Study: Helping a Small Sandwich Business Find a Way Forward
OVERVIEW
At Voscap, we recently had the opportunity to support a small sandwich business in Central London. With a team of eight dedicated employees, the company had been operating for three years. While they worked tirelessly to stay afloat, financial challenges began to weigh heavily on them. When the difficulties became overwhelming, they reached out to Voscap.
THE CHALLENGE
The sandwich company’s financial struggles stemmed from ongoing cash flow issues that eventually led to: The sandwich company’s financial struggles stemmed from ongoing cash flow issues that eventually led to:
HMRC payments being missed: In an attempt to keep the business running, they stopped paying taxes.
Partial supplier payments: Limited cash flow forced them to pay suppliers in part, straining vital relationships and disrupting operations.
Mounting debt: Despite their efforts, the debt continued to grow, creating a sense of urgency to address the situation.
Feeling overwhelmed and unsure of their options, the owners sought help after hearing about Voscap through word of mouth.
OUR APPROACH
When the business reached out to us, our priority was to offer immediate, empathetic support. We provided a free, confidential assessment of their situation. This allowed the owners to openly share their concerns and challenges without judgment. Here’s how we helped:
Comprehensive financial review: We conducted a thorough analysis of their debts, assets, and cash flow to understand the full scope of the challenge.
Clear explanation of options: We laid out the possible paths forward in a way that was easy to understand and tailored to their circumstances.
Reassurance and trust: By ensuring complete confidentiality and offering practical advice, we helped the owners feel supported and empowered to make informed decisions.
OPTIONS MADE AVAILABLE
We presented several viable solutions to help the sandwich business tackle their financial difficulties:
Time to Pay Arrangements (TTP): We explained how they could approach HMRC to negotiate a structured payment plan for overdue taxes.
Company Voluntary Arrangement (CVA): This option would allow them to agree on manageable repayments with creditors while continuing to trade.
Business Restructuring: We explored ways to streamline operations, cut unnecessary costs, and improve cash flow.
Voluntary Liquidation: If recovery was not achievable, we provided details on how a Creditors’ Voluntary Liquidation (CVL) could help them close the business responsibly, ensuring compliance and minimising stress.
OUTCOME
With our guidance, the sandwich company was able to:
Fully understand their options and legal obligations, reducing uncertainty and stress.
Choose the solution that best aligned with their goals and circumstances.
Ultimately decide on a Creditors’ Voluntary Liquidation (CVL) as the most appropriate path forward. This allowed them to:
Close the business in an orderly and compliant manner.
Ensure employees received the support they were entitled to.
Provide creditors with a fair resolution while minimizing further financial or emotional strain on the owners.
CONCLUSION
This case demonstrates the value of seeking professional advice early when financial challenges arise. At Voscap, we are committed to offering compassionate, approachable, and professional support to businesses in distress. By tailoring our approach to each client’s unique needs, we help them find clarity and confidence during difficult times.
If your business is facing financial difficulties, contact Voscap today for a free, no-obligation assessment. Let’s explore your options together and help you regain control.
ABOUT VOSCAP
Voscap’s primary objective is to save your business. Our team of experts’ knowledge in restructuring and turnaround assignments is invaluable when assessing the best option available to your needs. With experience spanning several decades, we have the skill and resources to provide viable solutions within all industry sectors. All organisations go through difficult times and we are here to help. From small to multi-million turnover businesses, we have dealt with the most complex of cases. We offer an initial free assessment in analysing your financial position and providing clear and precise advice making your experience a simple non-complicated process.