You turn to Accordion.
We step in as financial advisor and then CRO to address key operational, liquidity, and restructuring initiatives. To turn things around, we:
- Assess business performance, store/unit level financials, and develop a 13-week cash flow model to identify desired outputs and scenario flexibility.
- Support weekly reporting and re-forecasting of cash flows, and develop rundowns to show operating performance and credit statistics under various economic and capital structure scenarios.
- Review existing operations to understand the implications of COVID-driven operating changes on the business and to identify opportunities to reduce costs—including a review of material contracts, infrastructure, and overhead. As part of this, we provide contract recommendations and savings benchmarks, develop key employee retention and incentive plans, classify and review units to determine re-opening strategies, and support management in setting target savings goals and tracking potential concession deals.
- Assist in negotiations regarding the restructuring of the balance sheet, right-sizing operational footprint, the terms of debtor in possession financing, and the terms of a $10M equity investment by the investor. This results in the preparation of a pre-packaged Chapter 11 plan of reorganization and a successful filing.
Your value is enhanced.
Your company successfully navigates the impacts of COVID-19 on business operations. You emerge from the Chapter 11 process after 65 days with a strengthened capital structure, improved financial stability, and enhanced liquidity to support the continued operation of your restaurants. Through the reorganization process, you achieve a significantly improved balance sheet, reducing secured debt by more than $35M and raising $13M in new long-term financing and equity capital from the prepetition secured lender and equity sponsor. Additionally, your operations are improved, and you optimized your footprint with 157 go-forward units, closing 36 units during the year, and reducing rent expenses by approximately 10%.