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Debt Restructuring of Casual Dining Brewery

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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Home·Debt Restructuring of Casual Dining Brewery

The Situation

Upscale casual dining featuring fresh-brewed, hand-crafted beers. $90 million annual sales. $30 million debt. 26 locations across 11 states.

  • Lack of working capital and extensive use of capital leases relating to an expansion program.
  • $74 million of capital leases in secured debt.
  • $3.5 million annual cash loss.
  • Declining sales necessitated the implementation of operational improvements.

How We Advised

Our experts were engaged to lead debt restructuring negotiations with key parties.

  • Lessors holding ground leases and financial institutions holding equipment leases.
  • The ultimate goal is to obtain cash flow relief needed to implement operational improvements.
  • Negotiated $16 million debt-to-equity swap with the largest debt holder.
  • Resulted in $3.5 million of annual cash savings.
  • Realized $1.4 million of annual savings associated with real property and equipment leases.
  • $4.9 million of total cash savings realized.
  • Results reveal net income improvement of $1.8 million stemming from operational improvements.

Key Contact

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

Related Practice Areas

> Debt Restructuring Services 
When a company is in financial distress, our Strategic Advisory experts design and implement debt restructuring and refinancing strategies tailored to the company’s unique circumstances. We help middle-market businesses stabilize operations, improve liquidity, and optimize their capital structures. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

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