On 21st April 2014, their main warehouse and production facility suffered significant damage when a fire broke out in adjacent premises, spreading to Hazel’s property following an explosion caused when acetylene cylinders ignited.
Hazel immediately appointed us to handle the insurance claim on their behalf and as is often the case, the most pressing problem was finding suitable alternative premises to accommodate incoming and replacement stock, which could then be transported to customers. Initially, a supportive customer offered to let Hazel use their own warehouse but following some unforseen issues that rendered the arrangement unworkable. Warehouse operations were contracted to Eddie Stobart Ltd, an arrangement that is still running smoothly today.
The second priority was sourcing replenishment stocks due to the large amount lost in the fire. We sourced these from some UK-based companies and relied heavily on overseas suppliers, importing via airfreight to save time. Within six weeks, approximately 65% of the stock had been replaced, enough to keep the business running as usual.
What followed next was an extremely complex business interruption claim. While there was some loss of turnover and gross profit, we concentrated on the increased costs that resulted from sub-contracting the warehouse, and logistical challenges. Our other priority was the lost margin on turnover, which was necessarily incurred when supplies had to be obtained through unorthodox and expensive routes to fulfil customers’ demands. Having worked on the case from the start, it has been rewarding to see the business recovering and returning to the upward trend they enjoyed before the fire.