Provided an innovative funding solution for German electrical retailer, enabling implementation of turnaround strategy.

We worked with the administrator and the Promarkt management team to investigate various funding and restructuring options, with a view to saving as many jobs as possible.  The withdrawal of a key supplier had forced the German electrical retailer into administration in early 2008.  We undertook a review of Promarkt’s business and funding options before implementing a solution that allowed more than 80% of stores to continue trading.  The subsequent sale of six stores to trade buyers, combined with cash generated by closure of non-viable stores, provided vital liquidity for the business.  In addition to this, we developed an innovative asset-based lending solution for an 18-month period, which was instrumental in gaining support from creditors to facilitate the restructuring plan.  This enabled Promarkt to continue trading on a smaller footprint, and financed the opening of one new store as well as the refurbishment of existing stores.  It also allowed for a much higher staff retention rate than would otherwise have been possible.  The restructure was a groundbreaking transaction in Germany, uniting all key parties, including administrators, shareholders and management.  Our financial and retail expertise helped to deliver a solution that brought stability to Promarkt, saved over 300 jobs and built a solid foundation for future growth.