Bar Louie

Summary

Chief Restructuring Officer

Dallas, TX

Bar Louie is a US based operator of bar and restaurant dining facilities. Marketed as a “Gastro-bar”, the Company seeks to differentiate the brand through an array of craft cocktails, an enhanced food menu offering, and a friendly bar style environment.

Company aggressively expanded its footprint over a seven-year span. By 2019, many locations were unprofitable. Locations within shopping malls were especially hard hit, as reduced foot traffic and changing consumer demographics eroded sales volume. Declining EBITDA and free cash flow impaired the Company’s ability to service its debt, and the lack of available funds to reinvest in Capex and marketing created a tailspin of continued declines across the operating footprint.

Key Challenges

Highly Competitive Market

Industry-Wide Declining Sales

Over-Expansion

Unprofitable and Underperforming Locations 

Outsized Overhead Expenses

Liquidity Shortfall

Navigating COVID-19

Engagement Highlights

Phase I – Assess the Business Performance

Assess the Company’s liquidity situation and provide a strategic review of restructuring alternatives.
CMA determined that the Company required incremental capital to operate, and that a long-term solution required the Company to exit unprofitable locations dragging on the business.

Phase II – Stabilize Operations & Prepare for a Chapter 11 §363 Sale

CMA was retained as Chief Restructuring Advisor during the out-of-court sale / marketing process.
Assisted the Company in securing $3MM in bridge funding, oversaw the management of cash flow, developed a strategic plan, and helped the Company prepare for the potential Chapter 11 filing.

Phase III – Restructure the Business via a Chapter 11 §363 Sale

CMA was retained as CRO to oversee the Bankruptcy process.
Secured a $22MM DIP & $85MM stalking horse credit bid from existing lenders
Facilitated closure of 60 unprofitable locations and positioned the remaining for sale.
Navigated the COVID-19 pandemic through proactive steps to preserve cash, maintain the confidence of the lender group and continue to operate well within the confines of the DIP budget.
Despite the impact of COVID-19, successfully executed on a sale to the lender group for a purchase price of $82.5MM.

Bar Louie

Summary

Chief Restructuring Officer

Key Challenges

Engagement Highlights

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