B7 specialise in acquisitions and
investments within the FMCG supply
chain from manufacturing and
wholesale to retail and ecommerce.

TELEPHONE: 0844 264 8787
EMAIL: info@b7ventures.com

Doff Portland, 8th January 2013

A Company Voluntary Arrangement has been approved by creditors today, 8 January 2013.  B7 Ventures and the new Doff board had overwhelming creditor support for the restructuring with over 95% of trade creditors supporting the proposals.

Following the recent acquisition of Doff Portland by b7 Ventures, a bank and creditor-supported debt restructuring plan has been agreed.

The family-owned business was saved from insolvency through an accelerated sale process and this subsequent restructuring. The situation arose due to a build-up of more than £6 million of debt – including £3 million owed to unsecured creditors – and a lack of available funds from the previous shareholders. As a result of this, the business had a net asset value of less than £1 million. 

B7 together with 151 Products, the UK’s largest manufacturer and supplier of quality, discount household, garden and DIY goods, 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.

A Company Voluntary Arrangement has been approved by creditors today, 8 January 2013.  B7 Ventures and the new Doff board had overwhelming creditor support for the restructuring with over 95% of trade creditors supporting the proposals.

The result is that the business avoids insolvency, the unsecured creditors get a recovery against their existing debts, which they would not have otherwise received, and 151 Products can invest in the future growth of the business.

To ensure that Doff has had the ability to trade-on through the period during which support has been sought for this restructuring, 151 Products has provided Doff with trade finance facilities.  These allow Doff suppliers to trade with 151 Products, enabling them to get credit insurance on the goods supplied to the business. Given the distressed nature of Doff prior to 151’s acquisition, such insurance was not previously available to suppliers.

151 Products has also committed a facility of over £1 million to the Doff group, following agreement of the debt restructuring.

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