The New Covent Garden Soup Company
Subject
Accounting, Entrepreneurship
Publication Year
1995
Abstract
In February 1990, Cyril Freedman, a Director of Alan Patricof Associates Ltd (APA), a venture capital firm, pondered the situation of one of his investments, The New Convent Garden Soup Company Ltd (NCG). APA had taken a minority equity stake in the business a year earlier as part of a £1.2 million deal to fund the expansion of the business. In many ways the company had been a success. Under the direction of its founder and majority shareholder, Andrew Palmer, NCG had successfully pioneered an innovative fresh soup product in the fast growing UK chilled food market. The product had achieved wide consumer acceptance and sales growth had been dramatic. Unfortunately, the company's recent expansion had not gone well. The expectations presented in the business plan had not been achieved and the company was running out of cash. It seemed clear that APA would need to provide NCG with additional financial support to keep the company in business, but to what extent did Freedman want to participate in a full refinancing deal? As a non-executive Director of the company, he wondered what other recommendations he should make to Palmer and the rest of the board.
Topic List
Entrepreneurship, Starting-up, Financing, Growth
Industry
Food
Publication Event Date
1985-1990
LBS Case Number
CS-94--031
Location
UK
Publication Research Centre
Entrepreneurship
Supervisor
JOHNSON, R M
Available on ECCH
No
