The XBlades brand was established in 1989 and has over 30 years’ experience operating in the football boot and apparel industry. The Company initially specialised in innovative technology for bladed sole football boots and developed into a market leader for high performance, high-quality sports footwear, protection and apparel.
At the date of appointment, the Company was an established national brand that offered a wide selection of products and held partnerships with Australian sporting organisations and elite athletes.
The Directors appointed an Administrator to restructure the business and oversee the sale process.
Background
XBlades operated from Mt Waverley in Victoria. The company had not traded a profit since its inception and significant funds had been injected into the business from its shareholders and directors to continue operations.
The business explored options to reduce the losses. These options included weekly meetings to manage cashflow, additional funding from investors, accessing support from the Government including JobKeeper, reducing employee hours and exit unprofitable contracts.
Unfortunately, these initiatives could not stem the level of losses and the directors determined that it was best to place the company into administration and restructure the business.
How did we assist
During the voluntary administration, our focus was on the following key aspects:
- Conducting an urgent assessment of the Company’s financial position and cashflow requirements.
- Continuing to trade the business through the administration period, preserving the value in the Company’s national footprint and presence in the sporting industry.
- Marketing the business for sale.
- Holding discussions with various interested parties.
- Negotiating with a buyer to buy the business through a Deed of Company Arrangement.
- Preparing our report to creditors, presenting the findings of our investigations to creditors and outlined the offer to buy the business through a deed of Company Arrangement.
- Holding a meeting of creditors in which they voted to support the sale of business via a Deed of Company Arrangement.
Outcome
The business was sold to a third party and continues to operate today. In addition, employees received full payment of their entitlements and creditors received a distribution through the deed.
