Overview
Olvera Advisors was appointed as voluntary administrator of Kaddy Group, a beverage technology and fulfilment platform. The group operated an innovative technology and ordering platform that provides beverage suppliers with an end-to-end supply chain solution, allowing them to connect with buyers, simplify operations, streamline payments and fulfil trade and consumer orders.
Challenges
- Loss of investor confidence: The withdrawal of investor funding placed immediate pressure on the company’s liquidity.
- Operational setbacks: A combination of reduced product demand, surplus inventory, and the loss of key operational staff led to declining efficiency and mounting financial strain.
- High fixed costs: Significant rent and manufacturing overheads affected business margins, which further weakened cash flow and limited the business’s ability to recover organically.
- Ceased trading prior to appointment: By the time of our appointment, the company had ceased trading and had limited available funds.
Turnaround Plan
Our team implemented an immediate cost reduction strategy, including the closure of underperforming sites. We liaised with landlords and suppliers to maintain site access, recover third-party products, and fulfil outstanding customer orders.
Simultaneously, we conducted a targeted sale process, preparing an information memorandum and engaging with multiple interested parties to generate competitive offers. A suitable purchaser was identified through a DOCA proposal, which allowed the acquisition of company shares to retain vital non-transferable permits and licences.
Results
The sale and restructure through the DOCA safeguarded the company’s core operations and brand value. Kaddy Group was successfully recapitalised under new ownership, allowing it to continue trading and retain its employees.
Creditors also achieved a superior return compared to liquidation, and customer relationships were maintained.
Key Drivers of Success
- Swift administrative action: Immediate engagement with key stakeholders meant the company could maintain operational stability and asset protection.
- Strategic sale process: Our team’s targeted and transparent sale campaign attracted strong buyer interest and maximised recovery outcomes.
- Collaborative negotiations: Ongoing dialogue with landlords, suppliers, and DOCA proponents ensured a coordinated and constructive resolution.
