BTG saves 86 franchise restaurants through AMA process

The Challenge

A group of franchisees operating over 110 fast food restaurants across the UK faced imminent collapse due to significant cash flow and operational issues. Several restaurants had already been closed by the franchisors, with further closures imminent and the entire group on the verge of losing trading rights. The situation required urgent intervention to prevent further franchisor enforcement action whilst exploring strategic options that could preserve viable operations.

Our Approach

We immediately engaged with the secured lender and the franchisors to negotiate a standstill as related to enforcement, ongoing operations and funding, while they explored other options. As part of these negotiations, we were successful in securing the reopening of those restaurants recently closed by the franchisor. Managing the current management team whilst maintaining franchisor confidence and lender support required overcoming numerous hurdles to maintain transaction momentum through the AMA process.

The Outcome

We secured the sale and continuity of 86 of the restaurants to two separate purchasers. The transactions maintained franchise operations under new ownership with improved operational and financial management, whilst providing creditor returns through asset realisation. Our early intervention prevented total liquidation that management had initially sought, instead delivering outcome preserving significant restaurant estate and protecting jobs.