Operational restructuring and refinancing > EUR 2 billion

An international retail group with around 2,000 stores in Europe was faced with a critical decision: As a portfolio company of a private equity investor, there was an acute need for action to create the economic framework for a refinancing of over EUR 2 billion. However, the historically decentralized management of the national companies made transparency, controllability and group-wide measures more difficult. An experienced CRO took responsibility to ensure the stabilization and realignment of the company.

The restructuring was characterized by several critical factors: a lack of transparency of figures across countries, formats and stores, the need for a comprehensive performance improvement program, and the evaluation and optimization of the store portfolio – including significant divestments. At the same time, tough cost-cutting measures had to be implemented on the basis of reliable KPIs, financing structures had to be restructured and integrated liquidity and cash flow planning had to be optimised. The development of a refinancing strategy in the area of tension between costs, flexibility and risk as well as intensive bank negotiations increased the pressure even more.

In order to make the restructuring successful, clear strategic levers were set: a central control strategy across all countries and companies ensured consistency and control. By using ERP systems, KPI-relevant data was aggregated at store, country and group level, while a systematic store portfolio analysis identified closures and divestments. Group-wide process optimizations and cost programs were implemented, and rolling liquidity planning ensured financial stability. At the same time, a refinancing strategy with a balanced risk/cost profile was developed, a structured risk management system (interest rate, currency and liquidity risks) was established and covenant compliance was ensured throughout the entire process.

The implementation was consistent and rapid and with clear governance: Within a very short time, a transparent KPI and reporting structure based on the ERP systems was established. The store portfolio evaluation led to significant divestments, while tough cost-cutting measures were managed on the basis of valid data. Liquidity management and cash flow planning have been optimised, and the financing and refinancing architecture has been restructured. At the same time, the CRO led the bank negotiations, coordinated all financial partners and ensured compliance with the covenant. The closing was successfully prepared through active risk management and complete documentation of all measures.