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Interim Management of Restaurant Groups Secures Additional Debt for Growth

J.S. Held Acquires GLI Advisors, Strengthening Our Construction Project Support Services in the Western US and Hawaii

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Home·Interim Management of Restaurant Groups Secures Additional Debt for Growth

The Situation

Three restaurant groups: Bar Louie, Red Star, and Concepts. $120 million annual sales. $30 million debt. 65 locations, plus 8 franchises.

  • 87% year-over-year growth
  • Liquidity issues due to working capital needs
  • Financial stress resulting from the rapid 87% expansion of the Bar Louie brand, including 25 new locations over an 18-month period.
  • A privately held business had limited financial resources.
  • Ineffective CFO unable to produce compliant financials necessary to raise debt or equity financing.
  • More than five unsolicited letters of intent from interested buyers.

How We Advised

Our experts were engaged to assist in refinancing efforts.

  • CFO is unable to effectively manage finances, resulting in our team taking over CFO responsibilities on an interim basis.
  • Funded growth by attracting $5 million of debt while we served as interim CFO, alleviating liquidity issues.
  • The company signed a term sheet with a major Private Equity firm; however, consummation was interrupted by the credit crisis.
  • The company is back on track, liquidity is no longer a concern, and comps are positive on a monthly basis.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Office of the CFO & Corporate Finance Support 
The financial function is a critical partner in value creation in most businesses. We provide unparalleled support to the Office of the CFO to shape organizational strategy and enhance long-term business value. As CFOs and finance leadership across sectors face increasing demands, understaffing, and unprecedented challenges, we deliver guidance regarding financial planning and operations improvement, risk mitigation, and strategic business intelligence. 

 

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

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