GA Europe resolves complex, distressed retail situations. We do this by working in partnership with a retailer and its stakeholders to work out the best solution, whether it’s acquiring a retailer’s distressed debt, buying out a retailer’s underperforming format, implementing a store closure process or advising on distressed trading strategy. More often than not, it’s a combination of the above, enabling retailers, insolvency practitioners and other business advisors to focus on their core competencies.
We buy distressed debt
We work with corporate lenders such as banks or private equity houses by taking on their distressed debt positions. If a lender believes that the risks of continuing to extend its debt facility to a retailer are too great, we can provide upfront cash payment so the lender can exit its debt position. As part of Great American Group, we have the financial backing to move quickly and decisively, giving lenders immediate certainty around the recovery of funds.
…and acquire underperforming brands
A poorly performing division or brand has a detrimental effect on the overall business. We are able to buy these underperforming assets from a retailer or wholesaler, immediately solving the problem and bringing the management team’s focus back to its core business. Typically, a retailer is then able to invest this capital in its broader restructuring initiatives, helping it to drive growth in healthy parts of the business.
We advise on and implement store closure and stock clearance programmes
Working in partnership with a retailer, its stakeholders or advisors, we are very effective at managing store closure programmes, whether as part of a strategic market exit, a formal insolvency process or broader restructuring strategy.
Drawing on our extensive retail and operational expertise we can implement the entire store exit process, or work with you in an advisory capacity. From detailed operational planning of store and warehouse rationalisation, to defining an optimal discounting strategy and stock augmentation programme, we guarantee to maximise the return from any store closure process.
For healthy retailers, this means the problem of unwanted or non-core stores is immediately resolved. For insolvency practitioners our actions enable a full exploration of all options for the business whilst also benefitting from our detailed knowledge of retention of title. For other business advisors, we facilitate full focus on any broader restructuring process.
Ultimately, our restructuring services allow retailers - as well as their lenders, advisors or administrators - to deal effectively and quickly with stressed, distressed or non-core areas of the business. We’re committed to working in partnership with these stakeholders to ensure we always generate the maximum value for all parties. Read more about how we've done this here.