It’s been over five years since COVID-19 dramatically reshaped the business landscape. While many companies struggled to survive, some took bold, strategic steps to not just endure but come out stronger. One such example is an event hire business that faced an unprecedented crisis during the pandemic but used a tailored restructuring approach to protect its future — and its people.
The Challenge: COVID-19’s Impact on an Event Hire Business
Before COVID, this event hire business was a solid player with $2 million in turnover and a team of 10 employees. However, the pandemic forced it to close temporarily, leaving $600,000 in future bookings unrealised. Profitability had been mixed, and the company carried a significant debt load of $1.5 million.
With such financial pressure and operational disruption, the business was at a crossroads: close permanently or find a way to survive and restructure for the long haul.
The AS Advisory Approach: Using Voluntary Administration to Protect Value
Facing this complex scenario, AS Advisory stepped in with a clear plan focused on preserving value and safeguarding jobs.
- Voluntary Administration (VA) Process: This legal process was used to provide the business with breathing room. VA allowed the company to protect its assets and goodwill while temporarily suspending creditor actions.
- Holding Deed Established: This protected the business during the pause, giving time to assess options without the immediate threat of liquidation.
- Strategic Cost-Cutting: The business exited its leased premises and relocated to a more cost-effective site, saving $60,000 annually.
- Asset Realisation: By selling off old stock and non-core assets, the business raised $30,000 to improve cash flow.
- Capital Injection: The company secured $500,000 in new equity, strengthening its financial position to restart operations confidently.
The Outcome: Survival, Job Security, and Restructuring Success
Thanks to the VA process and the collaborative restructuring strategy, the business survived COVID’s impact. Importantly:
- All 10 employees retained their jobs and entitlements.
- The business was restructured sustainably to position it for future growth.
- Creditors received 10 cents on the dollar, reflecting a fair compromise given the circumstances.
What This Means Five Years On
Today, as we look back on the post-COVID era, this case highlights how proactive restructuring and expert advisory can make the difference between closure and revival.
The VA process, often misunderstood, can be a powerful tool—not just a last resort but a strategic approach to protect businesses in crisis while preserving jobs and stakeholder value.
For SMEs and advisors alike, this example shows that with the right guidance and a clear plan, businesses can navigate uncertainty, restructure effectively, and build resilience for the future.
If your business is facing similar challenges, or you’re advising clients in distress, AS Advisory is here to help you explore tailored restructuring options. In our experience, early interventions greatly assist with maximising the outcomes. Contact us today for a no-obligation, no-cost discovery call and find out how we can protect and grow your business value even in uncertain times.