Agency trade-out (solvent)
Investor, Emerisque, acquired MCS stores.
Sales agency agreement with new owner.
GA Europe provided a post-acquisition working capital injection plus a minimum performance improvement guarantee.
GA Europe took operational control of loss making stores earmarked for closure with approximately €8m of inventory at retail locations during a 8 month period.
GA Europe had full operational control of 7 MCS stores including:
Review of pricing and of targeted markdown programmes.
Staff scheduling and management.
Stock allocation and visual merchandising.
Deployed an experienced Italy-based GA Europe team into relevant territories.
Following a full pricing review GA Europe implemented a programme of targeted markdowns, while simultaneously running a comprehensive external and internal advertising campaign.
Our team's retail operational expertise had an immediate and significant impact upon the chain's trading performance, increasing like-for-like sales by up to 200% in some stores.
The trading outcome exceeded initial expectations.
Sales improved by 130% during an 8 month period.
Final inventory recovery was >105% of cost.
As a result only one store was closed, with the remaining stores handed back to internal management for on-going trading.
Employees actively supported the engagement until to the end of assignment.
Results surpassed the client's expectations, and led to an extended engagement.
Going concern solution
GA Europe GmbH
Office: +49 (0) 89 43 57 32 30
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