Voluntary Administration
The Situation
A National Pizza Franchise, operated a network of franchised pizza stores with its head office based in Brisbane. The Company owed over $4m to a secure creditor, upwards of $1m in employee entitlements and over $4m to unsecured creditors. SV Partners were appointed administrators.
The Solution
The company was trading at a loss prior to our appointment. We conducted an immediate review of the business upon our appointment and identified restructuring opportunities that could reduce the operational costs. These restructuring measures were undertaken to ensure the business traded profitably during the Voluntary Administration and to maximise the potential sale price.
The administration attracted national media attention and, as Administrators, we were respectful of the confidential nature of the appointment and the interests of all stakeholders. We continued to trade the business whilst conducting an ‘Expressions of Interest’ style marketing campaign. Our intention was to sell the business intact to maximise the return to creditors. We implemented measures to minimise the impact on other stakeholders such as franchisees.
The Outcome
The ‘Expression of Interest’ marketing campaign provided us with a number of potential buyers, resulting in a successful sale of the business. We were able to provide a solution to this complex franchise scenario by using our knowledge and experience in business recovery.