Project Crow operates as a retailer and wholesaler of food products. Like many in the sector, the business was heavily impacted by Covid-19 and suffered trading losses. Despite multiple interventions - including £10 million of shareholder funding and £5.3 million from the bank - the business continued to underperform. By mid-2024, a more ambitious turnaround plan was underway, supported by a newly appointed management team. Shareholders proposed further substantial investment, requesting the new funding rank pari passu with existing bank debt, alongside an extension to the current capital repayment holiday. Ongoing financial losses and the need for change
To evaluate this proposal, the bank requested an independent review of the group’s financial forecasts and estimated outcomes in the event of insolvency. FRP was engaged to assess the credibility of the turnaround plan and its reflection in short- and medium- term forecasts. Due to limitations in historical financial data, FRP focused on the most recent trading performance to inform its analysis. Estimated Outcome Statements were also prepared for each group company, then consolidated to determine the group’s overall financial position and to incorporate the proposed funding structure. Independent review to support critical funding decision
FRP advised both the bank and management on their respective positions, recommending a suite of monitoring tools to track performance and flag underperformance early. Following review of FRP’s analysis and proposals, the bank agreed to the shareholders’ terms on new funding security and the extension of the capital repayment holiday. Monitoring arrangements were then implemented with FRP’s guidance, tailored to focus on the business’s key risk areas. This collaborative outcome laid the foundations for the turnaround plan to proceed under close oversight and renewed financial support. Agreed terms and monitoring for recovery
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