Automotive Tire Retailer

KCP_Retail

KCP assisted an automobile repair and tire retailer with their Chapter 11 process. The project culminated in a successful restructuring which returned the company to four-wall profitability by refinancing its debt, streamlining its ownership structure, and eliminating unprofitable locations.

Challenges Faced

  • Decline in value of real estate during economic recession.
  • Lender aggressively sought a refinance or liquidation as the company’s profitability declined.
  • Negative cash flow position with stretched trade payments.

Solutions Delivered

  • Completed analysis of all locations to identify properties to exit.
  • Filed Chapter 11 Bankruptcy Reorganization to facilitate restructuring.
  • Negotiated payment plans with vendors.
  • Exited unprofitable locations with full repayment to secured lenders.
  • Refinanced retained real estate under long term, conventional real estate mortgages.
  • Obtained an additional line of credit for working capital.
  • Returned company to a cash flow positive and profitable position.