Restaurants Unlimited

Summary

Chief Restructuring Officer

Seattle, WA

Restaurants Unlimited is a 50-year-old Company that operates a network of over 40 multi-concept fine-dining and casual dining restaurants in the Pacific Northwest.

Company performance was declining in the wake of industry-wide declining sales, region specific state mandated minimum wage increases, and the investment in new restaurants that were not proving profitable. As a result, the Company’s trade vendors had been stretched and liquidity was tightening. CMA was hired to develop an in-court restructuring plan that included exiting underperforming locations and right-sizing G&A to align with that smaller footprint of more profitable locations.

Key Challenges

Highly Competitive Market

Industry-Wide Declining Sales

Large Deferred CapEx Requirements

Over-Expansion

Unprofitable and Underperforming Locations

Outsized Overhead Expenses

State Mandated Wage Increases

Engagement Highlights

Phase I – Assess the Business Performance

Reviewed the cash flow of the business and implemented strategies to preserve cash and extend the runway to maximize options and value for the Company and its senior lenders.
Performed a restaurant-by-restaurant review, understanding sales and cost trends, the market environment, and a review of any deferred and investment CapEx needs.
Evaluated the overhead cost structure, identified areas where savings could be achieved, and developed a right-sized cost structure for the existing and pro-forma businesses.

Phase II – Restructure the Business and Re-Capitalize the Business

Developed the rationale for a pro-forma entity, with a smaller footprint of strong performing, cash flow positive locations that would be attractive to investors or lenders.
Prepped and filed the Company for Chapter 11 bankruptcy protection, while assisting management. in exiting a number of its non-performing locations and supported the Company as it prepared to go to market.
Supported the Company and management through a 90-day sale process, which resulted in the sale of 25 locations (in-line with CMA’s strategic review) to a strategic buyer.

Restaurants Unlimited

Summary

Chief Restructuring Officer

Key Challenges

Engagement Highlights

Sign Up for Our Newsletter