Commercial deal of the week

Commercial deal of the week


Challenger bank Aldermore has facilitated a restructuring of a company after providing an investment firm, which specialises in purchasing underperforming businesses, with a £2.9 million loan to purchase a struggling business.

When investment group Brookmann Home Manchester 1877 purchased the bed linen firm Dawson Home Group in May 2011, a priority was to restructure the company’s finances, which was achieved with the help of Aldermore.

Brookmann Home set Dawson Home Group off on the road to recovery after Myron Mann, a Director of Brookmann Home, realised that the long-established bed linen business, which once traded under the Dorma brand, had plenty of potential.

Myron explained: “Our first challenge, having acquired the business, was to close down unprofitable lines and downsize the operation to return it to profitability. This process not only involved bed sheets but also the balance sheet and it quickly became apparent that the company’s bank borrowing facilities were too big, too costly and too cumbersome and needed trimming-back.

“We reviewed the financial packages on offer from most of the well-known banks and in the process came across the new British bank, Aldermore. Traditional banks were offering an ‘off-the-shelf’ business package which we could either take or leave, but Aldermore was willing to tailor a bespoke solution based on our specific requirements.

“To be honest, we found that the traditional UK market for asset-based lending was not at all creative and it was therefore refreshing to come across a new breed of bank willing to take a different view of our requirements.

“Having made the decision to put a £2.9 million finance package in place with Aldermore, the transfer process was both straightforward and quick. The bank’s due diligence was completed without any unnecessary delays and with the facility now up and running, our day-to-day working relationship with Aldermore is working well.”

Simon Maddocks, Associate Director of Aldermore’s structured finance team, concluded: “Aldermore is delighted to have played a part in the successful restructuring of this great British business. The transition that has taken place is truly impressive and I have no doubt the company will continue to go from strength-to-strength. I would like to wish Myron and his team best wishes for the future.”

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