Insolvency as a Tool for Rescue, Not Closure
When people hear the word insolvency, they often think of failure – the end of the road for a struggling business.
In reality, insolvency can be the start of something else entirely: a chance to protect value, save jobs and give a company the breathing space it needs to recover or transition responsibly.
At Parker Andrews, we see insolvency as a tool for rescue, not closure. The recent case of John Florence Ltd, a specialist manufacturer of children’s orthotics based in Lewes, shows exactly what that can mean in practice…
Turning uncertainty into opportunity
John Florence played a vital role in supporting NHS and private patients with life-changing medical devices, from tiny insoles to full body braces.
When financial pressures and internal disputes threatened its future, the risk went far beyond the business itself. The company’s closure would have left children without essential care and caused more than 30 redundancies in the local community.
Parker Andrews were appointed to step in, tasked with keeping services running, protecting jobs and maximising returns to creditors.
“The real value in John Florence was in its people and their expertise,” said Andy Barron, Insolvency Manager. “If we’d shut the doors, that value would have been lost overnight. More importantly, patients would have gone without vital medical equipment.”
Trading to protect value
Instead of closing the company immediately, Parker Andrews traded the business through administration while a buyer was sought. Andy worked on-site for nearly two months, coordinating with suppliers, clinicians and employees to maintain production and ensure NHS prescriptions continued to flow.
“The Parker Andrews team quickly understood the nuances of our business and worked with us to ensure continuity,” recalled Trevor Watkins, Director of John Florence. “That stability meant patients continued to receive their treatment and the business was ultimately able to be sold, protecting both services and employment.”
By stabilising operations, Parker Andrews preserved not just the company’s goodwill, but its social value – the relationships, expertise and specialist skills that made John Florence unique.
A successful outcome for everyone involved
In December 2024, the business was sold to Medfac UK Limited, securing a long-term future for the brand, safeguarding 30+ jobs and ensuring uninterrupted care for patients nationwide. The process also achieved a substantial return to creditors, with an interim distribution already paid to HMRC and further funds expected to follow.
“For Medfac, acquiring John Florence was about more than a business opportunity, it was about safeguarding a unique service that children and families depend on,” said Lisa Frodsham, Group Financial Controller at Medfac Group.
What this means for business owners
Every case is different, but the John Florence story highlights a simple truth: seeking advice early can turn a crisis into a rescue.
When directors engage openly with their accountants and licensed insolvency practitioners, there are often far more options available than they realise, from restructuring and time-to-pay arrangements to trading administrations and pre-pack sales.
“We weren’t just saving a business – we were protecting children’s access to vital medical equipment and delivering real value to creditors,” added Andy. “It’s a reminder that insolvency, handled properly, can create better outcomes for everyone.”
Need advice?
If your business is under pressure, early support can make all the difference. Contact Parker Andrews for confidential, practical guidance – no jargon, no pressure, just clarity and options.
Take our free 60-second Business Health Check or call 0800 612 7593 to speak with one of our insolvency specialists today.
