Turning Around Distressed Retail Debt
BroadNorth acquired $200 million of distressed senior debt from a national retail chain facing Chapter 11 bankruptcy, converting the position into controlling equity. We led the restructuring process, negotiating with landlords, suppliers, and labor unions to stabilize operations. By leveraging our operational expertise, we closed underperforming locations, renegotiated lease terms, and implemented a digital-first strategy, returning the company to profitability within 18 months and generating a 3.2x return on invested capital.
Challenge
Solution
BroadNorth formed a steering committee of major creditors to present a unified reorganization plan to the court. We injected debtor-in-possession (DIP) financing to maintain liquidity during proceedings and hired a new management team with e-commerce expertise. Our team negotiated a 40% reduction in lease obligations and extended supplier payment terms. This coordinated approach secured court approval in six months, preserved 5,000 jobs, and positioned the brand for a successful IPO two years later.
