Following its acquisition of garden care manufacturer Doff Portland in December 2012, 151 Products is implementing a restructuring plan to save the family-run firm from insolvency.
Doff fell into financial difficulty when debts piled up to more than £6m and a lack of available funds from previous shareholders. As a result, according to 151, the business had a net asset value of less than £1m at the time of acquisition.

DIY, discount goods and garden supplier 151 Products said it "made it clear to all creditors, including Doff's bank, that its support for the company was conditional on obtaining stakeholder consent for a restructuring of these debts."

Following 151 obtaining bank consent for the restructuring proposal in December, a company voluntary agreement was approved by creditors yesterday. 151 and the new Doff board had "overwhelming creditor support" for the restructuring, with more than 95% of trade creditors supporting the proposals.

It means, according to 151, that Doff avoids insolvency, the unsecured creditors get recovery against existing debts which they would not otherwise have received, and 151 Products can invest in future growth of the business.

Doff was able to trade on through the period in question by using 151's trade finance facilities. 151 Products has also handed over a facility of more than £1m to the Doff group following the debt restructuring agreement.

151 Products managing director, and member of the Doff board Richard Shonn said: "We have reassured Doff's customers that this restructuring process has not affected our ability to supply. 151's off of trade finance and additional investment in the company has maintained supplies to the business and we are operating on a business-as-usual basis."