MS Mode

Acquisition of the assets of a Dutch plus size fashion business out of insolvency

Transaction background

• MS Mode filed for insolvency in August 2016. GA Europe partnered with the former owner in the bidding process where GA Europe’s going concern concept was selected as superior to the alternatives: a strategic bidder and a “liquidator'.
• GA Europe  acquired significant assets of MS Mode and implemented an restructuring process in three phases. In parallel MS Mode NewCo was set up and a new assortment, marketing and POS approach was designed by the former owner.

Operational details

• GA Europe took over 130 stores in the Netherlands, 32 stores in Spain and 5 stores in Luxembourg.
• GA Europe traded out all existing stock, closed some unprofitable stores and opened new stores.
• GA Europe negotiated with ROT and trade suppliers about augmentation of stock and bought over €10m new stock. This created adequate time for the NewCo to roll out the new vision.
• GA Europe has recruited approximately 350 new employees over a 3 week period to ensure sufficient and flexible occupation in the branches.
• GA Europe executed its proven trade out programme including discount/stock management, POS signs, and a guided in-store trade out process.
• GA Europe replenished all going concern stores with fresh inventory and handed over the fully operational and restructured business.

Outcome

• The purchasing price paid by GA Europe settled all insolvency creditor claims.
• GA Europe and NewCo worked closely together to shape a restructuring plan.
• GA Europe executed the restructuring plan and NewCo took over operations successfully in Jan 2017.
• After hand over MS Mode achieved a like for like turnover of plus 20% compared to the previous year at the first quarter.