Corporate Restructuring and Administrative Rescue Essay

Corporate Restructuring and Administrative Rescue - Essay Example On the other hand, Town and Country Flooring (Norfolk) Limited (TFCN) was incorporated in the year 1984 and was traded as a small contract flooring provider who services the local market place in Norfolk. TCFN has been a stand alone business in complementing Town and Country Flooring Limited. In the year 2005, TCFN was sold to John Maidment, Robin Eglen, Brian Pestana and Jean L Hicks, who acquired TCFL at the same time (Report and Proposals [2], 2008). Pursuing this acquisition, there was an incessant drive to apply further development strategies for both TCFL and TCFN, which was inclusive of increasing the geographical coverage of the group with branches introduced in diversified cities. An armor service series was introduced to TCFN which involved the supply and installation of hygienic wall armor surfaces (Report and Proposals [2], 2008). TCFL grew gradually for many years whilst supplying as well as installing floor coverings, such as carpets and carpet tiles, along with dcor flooring, vinyl as well as wood floor coverings. It served four key markets, developing a powerful stand within the public sector, chief building contractors, new house builders as well as the management of facilities (Report and Proposals [1], 2008). The company has carried out several contracts by purchase order, framework type as well as standard construction industry sub-contracts. As a result, by the year 2002, the business had been performing well and has significantly incremented in infrastructure, both in the turn-over as well as the size of its work-force. This incessant growth strategy generated prosperous results, with turn-over incrementing year on year. However, unfortunately, whilst the turn-over was improvising, the directors were experiencing other problems in the management of expansion program. Overheads, which had incremented across the group so as to provide the continuing drive in order to increase volumes, were influencing on the productivity as well as the cash-flow restrictions were becoming more recurrent. In accordance with some more facts from the Directors' report, the company increased turn-over by 31 per cent during the year it gave rise to a new business unit in the Southern England are (Annual Report, 2006). Nonetheless, with the ending of the year, the Southern Office was shut and the business from there was merged in to another branch. Moreover, in addition to this, the group also experienced intricacies in the recruitment and retaining of a powerful and strong financial director. Currently, within the last six to eight months, many officials quit the business for some personal reasons, which contributed to the factors, together with a general worsening in the market place, meticulously in the construction sector, which construed to the fact that TFCL was facing a challenging period (Report and Pr