case study - turnround practice

Nightclub operator

Stakeholder: a lending syndicate of three banks.

Business: the operation of large scale nightclubs and bars. Turnover - £45m.

Objective: to create and execute a plan to restructure and refinance the business.

Process: initially the company operated 28 clubs but had long term lease commitments on at least 20 more. A plan was created involving compromise agreements with some major creditors and with the landlords of the closed venues and won lender support. However this plan could not be implemented and, with the agreement and support of the lending syndicate, the profitable operating venues were sold to a NewCo. During the following 12 months £4m pa of costs were driven out of the business.

Outcome: the successful sale or non-recourse closure of 19 of the remaining venues.