Success out of crisis
Asset rich, loss making £60m turnover pubs, retail & wholesale group with no senior management team or strategy following the death of the proprietor. Contractual disputes and family feuding threatened imminent closure. The agreed actions were:
Appoint new management team under interim CRO
Obtained interim bank support for restructuring plan
Expanded new business beyond existing regional footprint
Discounted sale of underperforming leaseholds to major competitor
Exited high street sites for full commercial rents & leveraged all other property assets
Initiated proper management disciplines and financial controls
Dividends reinstated following asset disposals – placating family stakeholders
Outcome of the assignment:
New CEO appointed with strong property background
Remaining sites are very profitable generating strong cash flows for the reduced group
Major legacy assets are now traded to grow longer term returns
Third stage development plan supported by bank funding in place
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Bringing a business back to life – The COMPAIR Turnaround »