Prior to the establishment of Retail Realisation, more than 30 engagements have been managed by our partners in the UK and mainland Europe.
A selection of case studies which demonstrate our breadth of experience are shown below.
Engaged by Moorfields to model a number of restructuring scenarios. Ultimately we were engaged to close every store, liquidating the majority of inventory in situ over a three week period.
Engaged by KPMG to model a number of workout scenarios and provide financial and operational advice to the Joint Administrators. Specifically we assisted in the formulation of the optimum strategy to liquidate the company’s remaining inventory through their freehold premises in central Glasgow.
Engaged by Moorfields to evaluate the potential outcome of a variety of scenarios. Subsequently appointed to manage the store portfolio during an AMA process. Pretty Green was sold to JD Sports who appointed us to de-stock and close the remaining stores.
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Appointed by Alix Partners as the agent to manage the liquidation of 92 Stores and 52 concessions across the UK, with a total inventory of £25m at cost. The 10-week engagement included the management of ROT, stock augmentation (£1.5m at cost) and licensee contracts. Gross recovery on the inventory was 135%. This resulted in the two main secured lenders recovering their full outstanding debt.
Appointed as the agent by Deloitte to manage the Net Orderly Liquidation (NOLV) of the second largest electrical retailer in the UK. There were a total of 235 stores and 3 distribution centres, with a total inventory of £125m at cost. Total net recovery of stock was 101%. The Team far exceeded the agreed forecasts on both the NOLV targets and ROT return.
As a result of a Good Co/Bad Co restructure of the largest Bed Retailer in the UK by EY, we were appointed as the agent to close 95 stores and liquidate £7m of inventory at cost. In collaboration with New Co, we cleared old inventory as augment, returning additional cash to the newly formed business purchased by Sun European PE. Sales were increased over the 8-week period by 47% with a return on cost of 74%, an increase on forecast of over 20%.
Appointed by Duff & Phelps initially as a retail advisor whilst an M&A process was conducted. Subsequently, we were appointed as the agent to close 77 Stores and liquidate £4m of inventory at cost, and we purchased £1m of augment stock at our own risk. Recoveries exceeded forecast by 35%, achieving a net return of 143% at cost.
Following a pre-pack administration, we were appointed by KPMG as agent to close 165 stores and liquidate £5m of inventory at cost. Additional clearance stock of £1m at cost was cleared from New Co, returning much needed cash into the newly formed entity.
By demonstrating the potential profitability of certain stores, in excess of 50 stores were returned to New Co for re-launching and inclusion into the main chain. Target return on inventory recovery was exceeded by 40%, with a gross recovery of 170% at cost.
Engaged by PWC to assist in managing the business during the process of an accelerated M&A. We were subsequently appointed as the agent to manage the closure of 135 stores and warehouse, negotiate ROT and Ransom Creditors and liquidate inventory of £16m at cost. Stock recovery exceeded targets set by 25% (149% of cost). Stock was augmented at circa £600k, to improve the recovery of the inherited inventory.
Appointed by PWC to move stock and assets across 144 stores in the UK and Ireland. The task was time critical in order for an accelerated M&A process to be completed. The work was completed in just 4 days, far exceeding the expectations and plan agreed with the Administrator.
The business was placed into Administration by EY and we were appointed as agent to close 56 stores and £35m stock at cost.
A further £5m stock was purchased to enhance recoveries of existing inventory. The business and 8 stores were subsequently sold as a going concern.
Following a period of self-administration, we were appointed by Kebekus & Zimmermann as agent of the Steilmann Group, which consisted of 5 separately run apparel brands, 15 warehouses and 250 stores/concessions. In addition, a wholesale business covering multiple jurisdictions and accounts. Total inventory was circa 70m Euros at cost. Recovery on stock exceeded the guaranteed targets by 20%, with sales at 60% up on the previous year over a 12-week period.
Whilst the business conducted a period of self-administration, we were appointed as Agent by Dr Flother to liquidate the inventory, close the stores across Germany, USA, France, Canada, Spain, UK and Australia, manage the AR/AP balances and complete ROT negotiations. In total, there were 246 stores/concessions and 1300 wholesale accounts, with inventory at cost of 78m Euros. The team exceeded all targets agreed, which resulted in the secured senior creditor achieving a return on their capital and interest, and other creditors receiving an above average return. The brand, IP and HO was subsequently sold as a going concern relaunch.
German clothing retailer Rudolf Wohrl went into self-administration following a weak trading performance. We were engaged by the company to clear stock, initially in 4 stores and subsequently (following the exit from self-administration) in a further 2 stores and a warehouse. The team exceeded sales by 65% and far exceeded the projected cash return to the company in both phases of the engagement.
Appointed by the parent company (REWE Group) to manage the Solvent close down of its electrical chain of 40 stores, with 65m Euros of stock at cost. Using our own capital, a further 2m Euros of stock was augmented to further improve the recovery. The project was managed over an 8-week period and exceeded the stock guarantee recovery at cost by over 30%.
Appointed by management during a period of self-administration to close 17 stores and clear 4m Euros of inventory. Results exceeded expectations, with sales 46% up on the previous year, and we achieved a 122% net return on cost.
Engaged by the Management Team to clear excess stock, in order to generate additional and much needed liquidity.
The transaction involved returning an agreed level of cash and liquidating the stock in the UK in order to not impact on the Netherlands-owned stores or wholesale accounts in mainland Europe. A pop-up store was operated in the UK and over £1m of cash generated for the business.
Appointed by the management team/advisors to close 10 stores
and liquidate 5m Euros of stock over a 16-week period, on a fee-based agreement.
Video Rental and Games Retailer, and a subsidiary of the USA parent business. We were appointed by the trustee to liquidate the stock of 13m Euros at cost and close 117 stores over an 8-week period. The transaction was agreed on an 80% guaranteed return basis. Recoveries achieved exceeded the guarantee (95%) and all stores were closed and left in a “Broom Clean” condition.
Supported the closure of 24 store German clothing retailer.