• West Cornwall Pasty Limited
Deals:

West Cornwall Pasty Limited

02 August 2017

Sector

Retail (Food)

Business description

West Cornwall Pasty Company is one of the most recognised food-to-go brands in the British travel and leisure sectors. Selling authentic Cornish Pasties made in Penryn, in Western Cornwall, the business has a focus on selling products made from the very best ingredients,

Situation

Despite the popularity of the brand, the business faced an uncertain situation in 2014 caused by the introduction of the “pasty tax”, which adversely affected profitability, and the impact of a mismanaged store roll-out strategy.  

BDO Role

BDO Special Situations team were engaged by the Company and its Shareholders to provide rapid corporate support services to this BDO audit client.

This cumulated in BDO running a sale and refinance process to a wide range of trade and financial buyers to deliver a solution which provided the business with a new financial platform.

Outcome

Following an extensive marketing process, a preferred financial buyer was identified for the business with the transaction needing to be executed via a pre-packaged administration sale as it required the exit of a number of non-performing retail outlets to rationalise the geographic footprint.

BDO Special Situations consequently prepared files for a third party to execute the transaction which was successfully concluded to Endless, via its ENACT EIS investment fund. This exit marked the first realisation by the Enact Fund and saw a 5.5x return to Investors.