Insolvency Services: Retail & Distribution

The Client:
The Company, consisted of five operating divisions; a retail operation of 312 retail store locations, four independent franchise companies totaling over 1,000 retail locations nationwide with sales totaling over $2 billion. The Company had previously filed for Chapter 11 bankruptcy protection after bondholder payments reduced working capital breaching bank covenants.

The Problem:
Changes in senior management who had no bankruptcy experience, a lack of available cash, while vendors withheld rebates, and operational costs sliding out of control such that payroll could not be met. The Creditors were concerned as to the impact on franchise agreements, the need for a sale of assets with effective leadership.

The Need:
Strong management able to quickly develop and implement a plan to manage cash, stabilize the operations, conduct the bankruptcy process while marketing and managing the sale of all assets.

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