We worked with the Administrator to identify and close the worst performing Libro stores in order to prevent against further losses.
Austria’s leading book, CD and stationery retailer went into administration following the failure of an attempted company turnaround. In order to preserve as much of the business as possible, and generate advance liquidity and guaranteed return, we closed thirty stores, which enabled the rest of the business to continue trading.
Our consultancy and retail support was then provided to the Administrator for an extended period while the sale of the business was arranged. We also financed stock during the crucial Christmas shopping period to generate additional value.
Altogether, this activity helped Administrators to preserve the enterprise value of the business and maintain employment protection wherever possible. Eight months later, 180 stores were sold as a going concern with minimal job losses, after which we worked alongside the new owners to manage the closure of a final 14 stores, which were not required.