Services
Financial Advisory Performance Improvement Creditors’ Rights
About Us
Our Team Engagements Case Studies
Media
Clear Viewpoints Insights In The News Press Releases
Contact
CASE STUDY

John Varvatos Enterprises

Men’s Luxury Apparel Omni Channel Retailer

John Varvatos Enterprises

Men’s Luxury Apparel Omni Channel Retailer

Assisted Company with liquidity challenges, eventually leading to a Chapter 11 Bankruptcy filing during the COVID-19 Pandemic. Company’s assets were sold in the court process to a Private Equity Group. Assisted the Debtor through the Bankruptcy process. Company’s case was dismissed in April of 2021.

Challenges
  • Company had overextended its retail store base, with some very expensive leases, leading to a negative 4-wall profit in many stores.
  • Company’s Ecommerce platform expense was extremely high and resulted in a negative EBITDA for that portion of the business.
  • Extremely high level of Secured Debt.
  • Company filed Bankruptcy during the COVID-19 Pandemic, creating numerous challenges.
Solutions
  • Created a communication process with the Lenders, that resulted in providing time for the marketing of the Company and its assets.
  • Developed cash flow forecasts that made clear the required needs of the Debtor to run a successful sale and wind down process of the estate.
  • Assisted the Debtor with a variety of advice during the Bankruptcy process, including assistance with all of court reporting requirements.
  • All Secured Lenders were paid in full, all administrative and priority unsecured claims were paid in full, and there was approximately a 10% recovery to unsecured claimants.
Back to Case Studies ›

How can we help you today?

Put our decades of experience to work for your company today.

Contact Us Now