Hospitality, Leisure and Sport
Hospitality, Leisure and Sport
Leisure and Hospitality
Although a diverse sector, many organisations have suffered from falling revenues due to pressure on consumers’ discretionary spend. This combined with the ever-increasing regulation, consumer attitudes towards 'fast food' are all impacting the revenues within this important sector.
Such is our reputation that both management teams and leisure sector investors frequently seek our involvement in restructuring distressed businesses. Our approach is to work in partnership with organisation to provide practical restructuring solutions to restore confidence and provide a platform for future financial growth.
When advising leisure sector organisations we typically start by examining the working capital arrangements. Given the sector’s notorious difficulty with accurate cash flow forecasting, our team’s priority will be to stabilise the company, ascertain trading levels and to ensure cash flow is managed correctly.
After this initial assessment we typically examine supplier relationships, as we know they can be a major influence on the trading performance of leisure businesses. For example major food or drinks suppliers have substantial power over their distribution networks, frequently imposing terms such as pro-forma invoices or seven-day payment; an obvious and substantial drain on cash flow. We work with businesses in this sector and often assist them in negotiations, typically acting on their behalf to obtain more favourable terms.
Sport
Well-managed professional sports organisations with realistic forecasts and sensible budgets are not always rewarded with a trophy at the end of the season. They do, however, stand a more predictable chance of turning investment into profit.
With an in-depth knowledge and understanding of the dynamics of professional sports organisation management, we can work closely with sports organisations, and their creditors and investors, to provide a strategic perspective on the direction of the business in order to achieve the right balance between the pursuit of on-the-field success and profitability off it.
Our capabilities include:
- Financial forecasting
- Cash flow management
- Short and long-term refinancing
- Security and risk management
- Fraud and litigation support
- Disposals
Related Case Studies
Hospitality, Leisure and Sport
Tiziano Gelati
The Tiziano Gelati brand is known for its three ice-cream parlours and one restaurant in northern Germany. Nevertheless, the company had to file for insolvency: proceedings were ordered in summer 2015 and a PLUTA attorney was appointed insolvency administrator. A few months later, the PLUTA team was able to sell the business with the consent of the creditors’ assembly. The buyer has experience in the industry and is successfully operating in other German /our-firms. All staff were kept on. The creditors received a higher-than average double-digit recovery rate on their claims.
Hospitality, Leisure and Sport
Grüntenlifte
There is good news for the ski resort in the Allgäu region. After an insolvency filing, things are looking up again. The PLUTA insolvency law experts were able to find an investor for Grüntenlifte. In addition to the ski amenities, the investor from the region also plans to create a year-round family-friendly mountain attraction. New gondola and chair lifts, a natural toboggan run and an extended network of hiking trails will ensure that visitors can enjoy the Allgäu’s pre-alpine scenery. The sale was very challenging, as the PLUTA experts not only negotiated an extensive array of contracts, but also had to take into account different ownership structures and more. The notary appointment alone lasted 14 hours, which shows how complex the matter was.
Hospitality, Leisure and Sport
Lielje Immobilien GmbH & Co. KG
Insolvency proceedings for the assets of Lielje Immobilien GmbH & Co. KG from Lower Saxony in Germany were opened in spring 2017. The company operated the well-known Ith- Sole-Therme, a thermal spa offering a pool area, various saunas, a restaurant, wellness services and more. The PLUTA restructuring experts kept the business running for nine months, during which time visitors had access to all facilities, without restriction. Following intensive negotiations, the PLUTA team found a solution and sold the business to a group of seven investors, all of whom came from the region and felt it was very important to maintain the spa. All jobs and the popular leisure facility in this rural part of Lower Saxony were thereby secured.
Hospitality, Leisure and Sport
JT Touristik
The well-known founder of the JT Touristik travel agency built the company into a familiar brand in the tourism sector. Nevertheless, an application for insolvency followed in the summer of 2017. The PLUTA restructuring experts ensured during the proceedings that more than 10,000 trips went ahead for more than 30,000 holidaymakers. A solution followed in late 2017 – the business was sold to the discounter Lidl, which strengthened its own travel business with the acquisition. All jobs were saved through the solution, and the familiar JT Touristik brand is still in use.
Our Other Industry Experience