Retail and Distribution
Retail and Distribution
The retail landscape has changed dramatically over the decade.
The inexorable growth of online retailers has changed the competitive landscape beyond recognition. Recent history is littered with examples of previously dominant retail brands that have failed to adapt to the changing market and have fallen victim to convincing online competitors such as Amazon.
Online competitors without the added burden of substantial real estate costs are able to offer highly competitive prices and a vast range of products – which traditional high street competitors are unable to compete with.
On behalf of our retail clients we regularly analyse the cost structure of their overhead positions and help devise a strategy that will stand up in a challenging and competitive market. Any business that hasn’t already considered an appropriate online presence is tempting fate, and it is with a firm eye on the changing landscape that we work alongside management to devise future-proof restructuring plans.
For many retailers, working capital remains tight; therefore, accurate forecasting and strict cash flow management is absolutely crucial. With this in mind we regularly assist clients in renegotiating their existing credit facilities and rent terms. Our experience in this sector enables us to put pressure on large institutional landlords to engage with a far greater sense of urgency by demonstrating clearly the opportunities and consequences of succeeding or failing to negotiate new terms.
Substantial savings can be made by negotiating more favourable leases and we are able to paint a clear and accurate picture of the options available to both retailers and their landlords. Our clients are thereby able to benefit from reduced fixed costs – taking advantage of all available tax and rent refund schemes.
Our expertise covers all sizes of retailers – from the small and medium-sized retailers who are struggling to compete with large out-of-town shopping malls with free parking and longer opening hours, to the larger retailers that have grown through mergers and acquisitions and have inherited the burden of rising overheads and complex organisational structures. For both we are able to provide strategic restructuring advice to reduce costs and boost profitability.
Related Case Studies
Retail and Distribution
G-fashion Group
A last-minute solution was able to be found during the self-administration proceedings of the well-known G-fashion Group. Despite the difficult conditions caused by the corona pandemic, an investor was found. While the investor process was ongoing, the textile retailer had to temporarily close its branches due to the lockdown. The contracts for the transferred restructuring, which had already gone through final negotiations, could therefore no longer be concluded as planned. While the management was already preparing to shut down operations and the branches were carrying out clearance sales after being partially opened, an agreement was finally reached with an investment company. Numerous employees have therefore kept their jobs. The PLUTA experts acted as custodians for three companies in the group and supported the proceedings in the interests of the creditors.
Retail and Distribution
Bürgerbräu Wolnzach AG
Bürgerbräu Wolnzach AG from Bavaria in Germany had to file for insolvency due to liquidity problems. A PLUTA restructuring expert acted as insolvency administrator. He kept the brewery’s business operations going and held negotiations with several interested buyers. Although the small brewery ceased brewing beer, the insolvency administrator was able to continue selling beer as the company’s warehouses were well stocked. Finally, it was possible to sell the brewery. The buyer originates from the Upper Bavaria region but has been living in the US for several years, where he successfully operates two breweries. Having found a buyer with roots in the region, the PLUTA team achieved the best solution for the brewery and the creditors. This also means that this region, home to the German Hop Museum, will still have a brewery in future.
Retail and Distribution
KARMEZ Dönerfabrik
The family company’s success story began in the eighties, when KARMEZ Dönerfabrik brought the first industrially manufactured doner kebab skewer to the market. But the company had to file for insolvency. The PLUTA experts were able to keep the longestablished company going and find an investor. This means that the high-quality doner kebab skewers will still be produced in Frankfurt in the future. By selling the business, PLUTA has achieved the best possible result for the company, the staff and the creditors. More than 60 employees were taken over by the buyer.
Retail and Distribution
Münsterländische Margarine-Werke J. Lülf GmbH
The management of Münsterländische Margarine-Werke J. Lülf GmbH, a supplier of margarine and fat products as well as milk drinks, conducted debtor-in-possession insolvency proceedings. Under such an arrangement, management remains in charge and guides the company through the crisis itself. A PLUTA expert acted as insolvency monitor, supervising the restructuring process in the interests of the creditors. The insolvency was mainly the result of the adverse market situation and the decline in demand in the lowermargin margarine segment. Business activities were maintained without restriction during the proceedings, and an investor was sought. The successful bidder presented an acquisition concept that would retain the most jobs. A total of 49 jobs were saved as a result.
Our Other Industry Experience