Case Study: Large European Restaurant Operator restores growth and reduces debt with AlixPartners

Large European Restaurant Operator - Customer Case Study

AlixPartners worked with a large European restaurant operator whose popular casual dining brands were underperforming, driving profits down just as debt levels were rising. The company needed a turnaround and was exploring whether a hedge fund holder of its senior debt should convert to equity and take control while the business restructured its restaurant portfolio.

AlixPartners recommended and executed a restructuring strategy that included selling a non-core brand and using company voluntary arrangements (CVAs) to reshape the two remaining brands. The firm built detailed financial models and a business plan, marketed the sale to buyers, and secured creditor approval for the CVAs. The result was a debt reduction of more than £250 million, about £40 million raised from the brand sale, and a stronger platform that later supported the acquisition of two fast-growing restaurant brands valued at approximately £110 million combined.