ATP rapidly established control through a dynamic 30-day plan and implemented a radical turnaround programme, which secured the support of the senior lender, Bank of Leumi, and existing investors. This enabled the lender to conduct an orderly transaction. Key elements that ATP delivered included:

• Stabilisation during peak trading: Implemented a 30-day operational plan to ensure throughput across the critical 3-month trading period.

• Stock integrity: Resolved significant stock accuracy issues by introducing perpetual inventory controls and technology, achieving daily accuracy of 99.5%+.

• Cost reduction: Built and executed a plan to reduce annual costs by £5.9m through head office and site infrastructure rationalisation.

• Procurement savings: Developed and delivered initiatives across direct and indirect spend, generating £925k p.a. in savings.

• Logistics transformation: Overhauled the logistics function, delivering a 50% reduction in wage cost, major improvements in vehicle dispatch efficiency, and £120k of MHE savings.

• Working capital improvement: Enhanced both payment days and debtor days, easing cash flow pressures.

Outcome

Within six months, the business was stabilised, brought under operational control, and repositioned as an attractive acquisition target. While a solvent outcome was not possible due to the pension deficit, ATP’s intervention enabled the trade and assets to be sold to Westland (GB Trading) for £13.5m.

This transaction preserved the vast majority of jobs and customer relationships, and allowed for full recovery of both bank and mezzanine debt.