The company was a national discount chain selling a wide range of merchandise, both local and imported. The categories included footwear, sunglasses, fragrances, accessories and jewellery. Local in-house brands, as well as well-known international brands such as Puma, Adidas, Wrangler and Levi’s were a part of the stock offering.
The Company experienced losses as a result of a combination of factors including increased distribution costs, margins steadily declining, the recession and downturn in the global economy and increased competition and commenced with Business Rescue Proceedings in February 2013.
- Securing post commencement funding (PCF) to continue trading.
- Continuity of supply of trading stock from suppliers.
- Reservation of ownership claims over stock on hand.
- Consignment creditors.
- Retention of critical staff members.
- Engagement and negotiation with landlords.
- Urgent cash injection was needed either in the form of a recapitalisation or sale of the business.
- Secured PCF.
- Continued trading in order to maximise value.
- Continuing leases remained in force and non-continuing leases were cancelled.
- Cancellation of all outstanding orders.
- Payments were limited to critical expenses only.
During the Business Rescue Process, the company continued to trade. The business was successfully sold with value being realized for creditors in excess of what would have been achieved in a liquidation.
Matuson & Associates received the Turnaround Management Association of South Africa runner up award in the medium to large Business Rescue category in 2014 for this successful Business Rescue.