KordaMentha KordaMentha is an Australian advisory and investment firm that provides specialist forensic, real estate, turnaround / restructuring and investment management services. The business was formed in April 2002 by Mark Korda and Mark Mentha. Located at
Level 24, 333 Collins Street, Victoria, Australia.
Phone: +61 3 8623 3333

Lincraft

KordaMentha Partners were appointed as Receivers and Managers of Lincraft, a national retail chain. Within four weeks of appointment a contract for the sale of business was executed providing for the transfer of remaining stores and store employees and the majority of head office employees to the purchaser, whilst achieving the highest attainable realisation of assets.

The objective of the informal workout was to develop and implement a number of initiatives to improve trading performance and reduce the ANZ Bank’s exposure. During the formal phase, the objective was to achieve the highest attainable realisation of assets for the ANZ Bank.

During the informal phase, the secured creditor exposure was reduced from $26 million to $9 million, representing a significant improvement of the ANZ Bank’s position. A contract for the sale of business was executed within four weeks of the formal appointment. This provided for the transfer of remaining stores, 100% of store employees and 75% of head office employees to the purchaser. A 95% return to the ANZ Bank was achieved compared to a 55% estimated return at the commencement of the informal workout.

Major aspects of the role included:

  • Development and implementation, in conjunction with senior management, of a 1,000 Day Plan which addressed the fundamental strategic issues facing Lincraft.
  • Inventory shrinkage was reduced to a 'best practice' benchmark of 1.5% of sales.
  • Alternative retail offerings were developed to address the decline in core markets.
  • Identification of non profitable stores and subsequent closure.
  • Consolidation of warehousing and logistics.
  • Supported margin through increased offshore purchasing.
  • A sale of business campaign was conducted during the formal appointment phase while continuing to trade on the business.
  • Implemented a targeted retail discounting campaign to increase retail activity during the trade on phase.

During the informal phase, the secured creditor exposure was reduced from $26 million to $9 million, representing a significant improvement of the ANZ Bank’s position. A contract for the sale of business was executed within four weeks of the formal appointment. This provided for the transfer of remaining stores, 100% of store employees and 75% of head office employees to the purchaser. A 95% return to the ANZ Bank was achieved compared to a 55% estimated return at the commencement of the informal workout.


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