Stabilisation and Sale of a Distressed Distribution Business

ATP was engaged immediately following the administration of a UK-wide distribution business to stabilise operations, restore value, and deliver a viable exit.

Within a short timeframe, ATP deployed a hands-on team to regain operational control, rebuild commercial performance, and restructure the cost base - ultimately enabling a successful sale of the business and its assets.

Stabilisation and Sale of a Distressed Distribution Business

ATP was engaged immediately following the administration of a UK-wide distribution business to stabilise operations, restore value, and deliver a viable exit.

Within a short timeframe, ATP deployed a hands-on team to regain operational control, rebuild commercial performance, and restructure the cost base - ultimately enabling a successful sale of the business and its assets.

Our impact

The Challenge

The business entered administration following a sustained decline driven by margin pressure, supplier disintermediation, and operational inefficiency. At the point of intervention:

  • Sales had fallen to c. 50% of prior levels

  • Customer confidence had materially eroded

  • Stock availability issues were driving ongoing lost sales

  • Supplier relationships were unstable

  • The cost base was significantly misaligned to revenue

Without rapid action, the outcome was likely liquidation.

ATP Approach

ATP focused on rapid stabilisation, cash protection, and creating a credible platform for sale:

Operational Control

  • Deployed experienced operators into key roles

  • Introduced daily KPI management and performance discipline

  • Implemented a consistent operational standards programme across all sites

Commercial Reset

  • Simplified the product range to a core offering driving the majority of revenue

  • Reactivated lapsed customers through structured outbound sales activity

  • Re-established pricing discipline and margin control

Working Capital & Cash

  • Rationalised inventory to focus on core lines

  • Delivered immediate cash through targeted stock liquidation

  • Stabilised supplier relationships to secure continuity of supply

Cost Transformation

  • Executed a full right-sizing of the organisation

  • Removed > £2.5m from the cost base

  • Closed underperforming sites and simplified the operating model

Exit Readiness

  • Built a clear, scalable operating model

  • Established credible forward financial performance

  • Positioned the business as a viable acquisition opportunity

Impact & Outcome

Transaction

  • Stabilisation programme enabled the successful sale of the business and its assets, preserving value that would otherwise have been lost

Financial Performance

  • c.£6m EBITDA improvement opportunity identified

  • Clear pathway to £3m EBITDA at normalised revenue

  • Cost base reduced by >£2.5m

Cash & Working Capital

  • £669k cash generated from stock liquidation

  • Improved stock efficiency and working capital control

  • Stabilised cash position during critical trading period

Operational Performance

  • Step-change in warehouse and branch efficiency

  • Reduced stock-outs and associated lost sales

  • Embedded sustainable operational standards

Commercial Recovery

  • Rebuilt customer confidence and reactivated key accounts

  • Restored trading momentum and order volumes

  • Established a clear, competitive market proposition

Conclusion

ATP converted a distressed, post-administration business into a stabilised, saleable platform in a matter of months.

The engagement demonstrates ATP’s ability to deliver rapid operational turnaround, unlock cash, and drive real transaction outcomes in high-pressure situations.

Status:
Realised

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