Sports Retail Group Turnaround

Strategic review | Turnaround plan | Working capital management | Refinance

Vantage Performance acted as the Chief Restructuring Officer (CRO) for this project.

National fitness retailer runs too hard.

A national fitness retailer with 25 stores turning over $30M had experienced years of rapid growth.

The group had also transformed from a largely franchisee model to a company owned model. However, the business had insufficient management skills and systems to run a chain of stores, nor did they have the required balance sheet and finance facilities to fund that transition.

As a result, the directors found themselves with mounting losses due to a range of underperforming stores and a working capital gap of $5M.

The business had also breached its $10M in banking facilities.

How we turned things around.

Our first step was to conduct a strategic review of the group to assess their options whilst implementing a business stabilisation plan. We developed a turnaround plan comprising a range of initiatives including a de-stocking plan, range review, site relocation, store closures, ATO/creditor payment plans, headcount and overhead reductions.

We negotiated a standstill agreement with the major financier and restructured expired term loans.

During the turnaround the business was sold to Rebel Sport.

 

 

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