Buy debt and restructuring by store closure programme (insolvent)



Transaction background


  • Endless investment.  56-store department store chain already in administration (EY).
  • GA Europe acquired the 2nd lien debt with face value of £10.2m in July 2011.
  • Sales agency agreement with administrators EY.



Operational details


  • Full operational control of 56 TJ Hughes stores including:
    • Review of pricing and targeted markdown programmes.
    • Extensive stock augmentation programme (Gelert, Makro, Eleganze, Romans, Webbs Books).
    • Aggressive advertising campaign across national and regional media (print and radio).
    • Compelling staff incentive programme.
    • Assisted administrator with ROT negotiations and modeling.
  • GA Europe applied a robust approach to property negotiations (Goldacre).





  • Speedy resolution of a distressed retail situation – liquidation of stock over an 8 week period.
  • Healthy segment of the business remained active with 6 stores and the brand sold as a going concern to Benross Group.
  • Successful navigation of a complex deal due to presence of multiple debt holders.