Our client, a medium sized retailer, was experiencing operating losses and a constrained cash flow as a result. We were engaged to provide commercial advice relating safe harbour protection for the directors and to help develop a turnaround plan to meet the better outcome assessment. Our work included:
- Meeting with the CEO and CFO to ensure the company satisfied the eligibility of safe harbour;
- Helped management articulate a turnaround plan, which included restructuring leases and the closure of underperforming stores;
- Assisted with communication to the major secured creditor to gain support for the turnaround plan; and
- Provided the board of directors our advice as to whether this plan was likely to lead to a better outcome.