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Case Study

Hair Salon Retail Chain

Beauty salon chain operating under various brands.

Revenue

$76 million

Industry

Retail, Cosmetics & Beauty Care

Services Provided

Insolvency, Assignment for the Benefit of Creditors (ABC), Fiduciary

Situation

Family office was unable to improve four-wall contribution post-acquisition with planned shift to higher-end services and streamlining of support costs. 

Accomplishments

  • Performed a detailed analysis of various operating strategies based on different numbers of locations to keep open, the remaining lease terms and the projected performance of each location.
  • Based on a detailed review of the operating and financial details supporting the four-wall operating contribution and the back-office costs to support the smaller footprint, determined the resulting platform was insufficient to realize the targeted level of profitability.
  • Compared liquidating under Chapter 11, assignment for the benefit of creditors (“ABC”) and other wind-down options and ultimately the Company agreed with the proposal to liquidate through an ABC.
  • Assisted in preparing the company for the assignment and acted as financial advisor to the assignee.