SRG: Securing the best result for stakeholders
We established a highly trusted relationship with GA Europe over the course of the SRG disposal. From the initial negotiations right through to the final reconciliations, GA Europe acted with respect, fairness, integrity and pragmatism.”
Peter Lucas, Chairman and Chief Executive, The Baird Group; Chairman of the UK Fashion & Textile Association
SRG, trading as ‘Suits You’ had benefited from a company voluntary arrangement in February 2010, but trading continued to decline throughout that year, resulting in a distressed situation that needed a speedy solution.
Having outbid a number of direct and trade competitors, a formal insolvency process was initiated with Zolfo Cooper. We also struck a deal with Baird Group for the provision of corporate services such as HR, Finance and IT.
Taking full control of SRG’s retail operations
Our team’s expertise in managing distressed retail situations meant we were able to make an immediate impact upon the chain’s trading performance, after taking full control of SRG’s 66 stores. Specifically we undertook a line-by-line review of pricing resulting in a programme of targeted markdowns and quickly bought in new autumn/winter merchandise into stores. We also initiated an aggressive advertising campaign that resulted in a successful stock clearance programme. And we also put in place a compelling staff incentive scheme.
Maximized returns for shareholders and financial stakeholders
The outcome was a carefully managed deal that resulted in the good part of the business being kept alive – we sold 15 of the 66 stores back to former owner Baird Group. Redundancies were also kept to a minimum – less than 1% of the workforce. As a result of our actions, we were able to secure a better than normal financial settlement for unsecured creditors.
Our work with SRG clearly demonstrates how GA Europe can deal quickly and effectively in distressed retail situations, whilst also maximizing returns for shareholders and financial stakeholders. Central to this success is our ability to transact quickly, our extensive retail operational experience and our network of highly experienced field consultants.