LARGE INDEPENDENT SUPERMARKET - RURAL WA
$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 how things operated, 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.
Andrew understood what was going on, Andrew is the rockstar for us, I give my kudos to him, Andrew's knowledge of understanding of the process and the empathy of how we got into this situation and being effective and quick.