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Case Study: Retail Bookselling ChainCrisis Management, Workout Consulting, Bankruptcy ConsultingCompany: Medium-sized retail bookselling chainSituation / Tasks Performed: Excessive capital investments associated with long-term business strategy decisions and poor operating performance led to an extreme cash shortage during the off-peak selling season. TRG was hired to immediately stabilize cash flow, negotiate with trade vendors and to develop and implement a restructuring plan that would protect the private stakeholder's interests. Once developed, TRG generated cash to fund the restructuring plan by running selected GOB sales, trimming store operating expenses and rationalizing SG&A. In addition, TRG negotiated with both secured and unsecured creditors to generate support for the turnaround strategy. Results: The Company ultimately filed for Chapter 11 protection and sold its operating locations as part of the reorganization strategy. The secured party was paid-in-full and the shareholder's guarantee was dissolved. Unsecured creditors are expected to receive a distribution in bankruptcy that exceeds that which they would have received in liquidation. Nature of Assignment: Primary: Crisis Management Secondary: Workout Consulting Tertiary: Bankruptcy Consulting Industry: Retail |
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© Copyright 2007 The Recovery Group, Inc. All rights reserved |
