SECTOR
Casual dining
BUSINESS DESCRIPTION
UK division of a global casual dining brand operating under a license agreement from its Belgian parent.
DATE
June 2020
SITUATION
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Le Pain Quotidien (UK) is a chain of 26 restaurants, operating under a license agreement from its Belgian parent. Of these restaurants, 24 were located in London and the remaining two were located in Leeds and Oxford.
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The enforced closure of all restaurants due to the COVID-19 pandemic resulted in an unprecedented reduction in sales, compounding the existing trading challenges.
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The UK company was part of a group-wide cash pooling arrangement managed by its Belgian parent. The parent company removed the funding to the UK company with the exception of a $1 million loan provided to pay critical expenses including salaries and wages. As a result, the Board approached A&M to advise on restructuring options, which was later extended to conduct a Special Situations M&A process.
A&M ROLE AND OUTCOME
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As part of the Special Situations M&A process we approached a wide range of interested parties, comprising financial, strategic and trade investors. Twelve offers were received from ten parties.
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The parent company considered the solvent offers received to be either (i) not credible, or (ii) commercially unsatisfactory for the Parent in its various capacities as shareholder, majority creditor and franchisor.
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We consulted with the secured creditor throughout the process and successfully transacted a pre-packaged sale of all assets of selected sites without conditionality.
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