Agency trade-out (solvent)



Transaction background


  • 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.



Operational details


  • 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.