Restaurants Unlimited

Summary

Chief Restructuring Officer

Seattle, WA

Restaurants Unlimited was a 50-year-old company that operated over 40 fine-dining and casual dining restaurants across multiple concepts in the Pacific Northwest.

Facing declining performance due to industry-wide sales challenges, wage increases, and unprofitable new investments, Restaurants Unlimited engaged Carl Marks Advisors (CMA) to develop an in-court restructuring plan. CMA implemented strategies to preserve cash flow, conducted a detailed performance review of each location, and identified cost-saving opportunities to create a right-sized cost structure. The plan focused on a pro-forma entity with a smaller, profitable footprint, leading to a Chapter 11 filing and the successful sale of 25 strong-performing locations to a strategic buyer within a 90-day sale process.

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

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