New owner 151 Products, which plans to reach £100m turnover by 2015, bought a "distressed" Nottingham-based Doff last month (HW, 18 December 2012) on the condition the CVA went forward. Doff had a £6m debt, including £3m owed to unsecured creditors, and a net asset value of less than £1m.
151, the UK's largest manufacturer and supplier of discount household, garden and DIY goods, said its support for the company was conditional on obtaining stakeholder consent for a restructuring of these debts.
This month, 95 per cent of trade creditors supported the CVA. 151 said it has now committed more than £1m to the Doff group.
Managing director Richard Shonn, who is a member of the Doff board, said it is business as usual at Doff and he now hopes to increase turnover from £9m to £13m by 2014 by winning back contracts and launching new products.
He blamed Doff's debts on poor contracts, overpaying, a lack of new products and the "drag of being in business for 60 years and carrying too much dead weight".
Shonn said Doff's factory in Nottingham is state-of-the-art and 151 will be able to operate it more efficiently by making it a year-round operation by manufacturing 151 car-care and household products out of season.
Doff currently supplies Tesco, Asda, Morrisons and Wilkinson but it lost B&Q last year, partly because of Doff's lack of credit insurance, said Shonn.
He added that with 151's credit insurance now in place for Doff, he hopes to win back B&Q in 2014. He admitted that previous creditors "took a haircut" with the CVA but had been running a "risky business" because Doff was operating without credit insurance.
Shonn pointed out that Doff is seen as a cheap brand but said he wants to alter that perception. He also plans to promote Doff into independent garden centres.