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Garden manufacturer Doff Portland bought back from the brink

Published: 9 January 2013
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."

Comments

Published prior to March 2014
By ADAM
I agree whole heartedly with you, this whole thing is a crude way of covering up the chairman and a certain managing director with the initials M J who is incompetent. I would think that the deceased father of the current chairman is turning in his grave at such incompetence. open your eyes 151 and sell it.
Published prior to March 2014
By dave b
The statement "Doff board had "overwhelming creditor support" for the restructuring, with more than 95% of trade creditors supporting the proposals. " is actually not that accurate. The reality was that trade creditors had little choice in the matter if they were going to recover any losses at all. If all creditors had not agreed then none of them would have ended up with anything as the aquisition would have fallen through and with no capital there would have been nothing to give back. We all know how mysteriously the administration fees creep up and up so there is nothing left for the businesses which in effect kept them afloat this long!

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