Retail & FMCGBusiness Rescue

Formal Business Rescue of a National Retail Chain — 2,000+ Jobs Saved

2,000+

Jobs Saved

R1.2B

Debt Restructured

85

Stores Preserved

22 Months

Duration

Anonymised under strict NDA — no client identities disclosed

The Challenge

Understanding the Problem

A national retail chain with 120 stores and over 3,000 employees was facing severe financial distress. Accumulated debt of R1.2 billion, declining foot traffic, and an outdated supply chain had pushed the business to the brink of liquidation. The board resolved to place the company under formal business rescue, and SAAC was appointed as the lead Business Rescue Practitioners.

Our Approach

How We Tackled It

01

Immediately stabilised operations and secured interim funding to maintain trading

02

Conducted a comprehensive assessment of all 120 store locations, identifying 85 viable stores for retention

03

Engaged with over 40 creditors in structured negotiations to restructure R1.2B in debt

04

Developed a detailed business rescue plan with phased implementation milestones

05

Implemented operational improvements including supply chain optimisation and inventory management

The Solution

What We Delivered

SAAC led the formal business rescue proceedings with a focus on preserving the business as a going concern. The rescue plan involved closing 35 underperforming stores while retaining 85 profitable locations, restructuring R1.2B in debt through negotiated settlements with creditors, and implementing operational improvements to restore profitability. A new management structure was put in place, and the supply chain was completely redesigned to reduce costs by 28%.

Key Outcomes

Over 2,000 jobs preserved across 85 retained store locations

R1.2B in debt successfully restructured through creditor negotiations

Business restored to profitability within 14 months of rescue commencement

Supply chain costs reduced by 28% through redesigned logistics

Rescue plan approved by 78% of creditors by value

Company successfully exited business rescue as a viable going concern

"During one of the most challenging periods in our company's history, SAAC guided us through a formal business rescue process with professionalism and rigour. They saved over 2,000 jobs."

Board Chairperson

National Retail Chain

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