Creative Hairdressers

Phase I – Assess Business Performance / Refine Liquidity Forecasting

• Performed a complete review of the profitability of all locations to identify locations that were not positively contributing to G&A coverage.
• Reviewed overhead costs to identify areas to align with industry norms and improve profitability.

Phase II – Development and Execution of an Out-of-Court Restructuring Plan

• Worked closely with the Company and a real-estate advisor to develop out-of-court settlement plans for all locations targeted for closure. 
• Developed a new G&A baseline that adjusted for a reduced footprint as well as incorporating feedback from CMA on cost cutting opportunities.
• Communicated the details of the restructuring plan to interested parties (both buyers and re-fi candidates), as well as provided routine updates to all parties as to the progress of the restructuring plan which the Company had begun executing on (prior to a transaction).

Phase III – COVID and a Pivot to an In-Court Process and a 363 Asset Sale

• The advent of COVID severely hurt the Company’s ability to close a deal and execute on its restructuring plan.
• CMA helped the Company go into hibernation mode and supported the business through a successful in-court sale process, saving ~5,000-6,000 jobs.