03 Dec Chain of Chinese Restaurants
Appointment: Voluntary Administration followed by Liquidation
A group of restaurants that was established since 2005 that specialised in authentic Chinese cuisine.
The business was a family business that expanded to a business group that employed over 100 staff at its peak.
Over the last few years, the competition was increasing, costs of wages and the ATO also conducted an audit on its past tax returns which resulted increased the group’s ATO liability to over $3million collectively. The business owners were reaching retirement and did not want to continue to trade the business and had no succession plan.
We were appointed as voluntary administrators and assisted with the sale of the profitability stores within the group and ensured that these employees were able to continue to be employed as part of the sale. We also closed down the non-performing stores and reallocated staff and resources across the group.
We were able to pay a dividend to priority employee creditors from the sale proceeds for the non-continuing employees and ensures that key suppliers maintained on-going business relationship.
How Greengate Advisory can help
Greengate Advisory examines all options available for businesses by reviewing trading performance and considering non-financial factors to improve all stakeholders’ positions.
Early intervention is often the difference between successful restructuring or failure of the SME entity and avoids the destruction of the SME’s enterprise value. We will develop and implement strategies and we have the expertise to provide restructuring advice.