Solvent wind-down and retail network exit
Radio Rentals, a national consumer leasing business with a long-standing retail presence, faced mounting pressure from shifting consumer behaviour and structural changes across a traditional retail landscape.
Related Services
RestructuringRelated Industries
Retail & ConsumerRadio Rentals, a national consumer leasing business with a long-standing retail presence, faced mounting pressure from shifting consumer behaviour and structural changes across a traditional retail landscape.
The onset of the pandemic accelerated these challenges, prompting the closure of all physical stores. In response, a strategic and orderly exit from its retail footprint was implemented to preserve value and reposition the business for long-term resilience in a digital-focused pandemic environment.
How we helped
Objectives
The business needed a clear, confident strategy to exit its retail network while maintaining stakeholder value.
The key objectives were:
- Conduct the wind-down with integrity, fairness and consistency.
- Minimise risks associated with the wind-down process.
- Conduct the process in an orderly manner to minimise lease payouts and maximise realisations from inventory and the debtor book.
What we did
Our engagement spanned three phases:
- Diagnostic and initial planning – we conducted a detailed store-by-store assessment, advising the board on market metrics to support a robust business case and negotiation strategy with major landlords. This phase was performed in conjunction with the business exploring other options (e.g. sale of business), however, ultimately our plan provided the best financial outcome.
- Detailed implementation planning – preparation of a comprehensive implementation plan, including all stakeholder communications.
- Implementation – execution of the plan.
Outcomes acheived
We were able to successfully work with management to wind down the business and manage the complex exit. Leading detailed financial modelling to support a targeted lease exit strategy, which enabled the physical closure of a national 35-store network in under 12 weeks.
Through direct and considered engagement with landlords, we negotiated lease surrenders at approximately 20 cents on the dollar of total liability. This significant outcome during a once-in-a-lifetime event, demonstrates KordaMentha’s ability to deliver strategic, agile and grounded solutions that protect value and guide clients through complex transitions with clarity and confidence.
