Three restaurant groups; Bar Louie, Red Star, Concepts. $120 million annual sales. $30 million debt. 65 locations, plus 8 franchise.
- 87% year over year growth
- Liquidity issues due to working capital needs
- Financial stress resulting from rapid 87% expansion of Bar Louie brand including 25 new locations over an 18 month period.
- Privately held business had limited financial resources.
- Ineffective CFO unable to produce compliant financials necessary to raise debt or equity financing.
- More than five unsolicited letters of intent from interested buyers.
- MorrisAnderson engaged to assist in refinancing efforts.
- CFO unable to effectively manage finances resulting in MorrisAnderson taking over CFO responsibilities on an interim basis.
- Funded growth by attracting $5 million of debt while MorrisAnderson serving as interim CFO alleviating liquidity issues.
- Company signed term sheet with a major Private Equity firm, however consummation was interrupted by credit crisis.
- Company is back on track, liquidity is no longer a concern and comps are positive on a monthly basis.