BTG delivers pre-pack administration sale preserving UK operations

The Challenge

The parent company of a UK and Canadian retail business significant financial distress after years of loss-making growth-phase expansion. Significant investment of £6.8 million had been made to support store network expansion, but shareholders were unwilling to inject additional capital. There were also numerous underperforming UK sites carrying high rental obligations. MBO and traditional sale processes were considered but proved unviable given the business's financial position, necessitating an alternative approach to preserve value and operational continuity.

Our Approach

Upon appointment we determined that the optimal outcome required delivering an accelerated merger and acquisition transaction, enabling the business to exit leases on underperforming sites, and allowing the new owner to fund working capital for the now slimmed down operations. Our team prepared comprehensive transaction materials including detailed Information Memorandum, Teaser, NDA, Buyer List, and Data Room for prospective parties.

The Outcome

The sale of the business and its assets was completed via a pre-pack administration process, ensuring seamless transition to new ownership whilst preserving viable UK operations. The transaction delivered viable separation of UK and Canadian businesses, enabling each operation to pursue appropriate strategic direction under different ownership structures.