Successful sale of Digital Marketing Agency

Moorfields were appointed to advise and subsequently act as Administrators over the UK subsidiary of an international cross-border Group comprising 12 entities and a listed parent company.

The Group had suffered sustained trading losses, leading to severe cashflow pressures that neither the parent company nor other subsidiaries were able to support. Despite exploring external equity investment and implementing cost reduction measures — including redundancies and the closure of non-core operations — the UK company remained unable to service its debt or meet creditor arrears.

Moorfields were engaged to assess strategic options, preserve value in viable parts of the business, and protect the position of secured creditors while a long-term solution was explored.

Objectives

• Review restructuring and insolvency options for both the Group and the UK subsidiary
• Protect the secured creditor’s position and manage short-term cashflow pressures
• Identify and preserve viable business units capable of continued operation under new ownership
• Conduct an accelerated marketing process to identify a suitable buyer for the UK operations
• Ensure business continuity, employee retention, and customer service stability

Moorfields’ Actions

• Worked closely with the Group CEO and CFO to evaluate cross-border insolvency options and identify the most effective route for the UK entity
• Conducted a rapid operational and financial review, identifying service lines that could form the basis of a viable ongoing business
• Engaged specialist agents to run an accelerated marketing process, attracting multiple expressions of interest
• Managed critical cashflow, ensuring payroll commitments were met and the secured creditor’s position was protected
• Led negotiations with prospective purchasers, balancing creditor returns with business continuity and job preservation
• Completed a successful pre-packaged sale of the business simultaneously with the company entering Administration

Results

• A pre-pack sale of the business was completed, preserving significant value that would otherwise have been lost in liquidation
• The secured lender was repaid in full on the day of appointment
• All employees transferred to the purchaser under TUPE, minimising redundancies
• Customer contracts were novated, ensuring service continuity and protection of goodwill
• The purchaser was introduced to a new secured lender to support working capital needs post-acquisition
• The transaction delivered superior recoveries for creditors and safeguarded the operational future of the business