Radio Rentals

Struggling in a challenging retail market, Radio Rentals needed a viable exit strategy.

Background

Given changes in consumer habits, Radio Rentals, a large national consumer leasing business, required the development and implementation of a plan to solvently wind-down the business and an orderly collection of its debtor book.

Approach

KordaMentha completed a store-by-store assessment advising the board on key market metrics to support a business case and negotiation strategy with some of Australia’s largest landlords.

We then assumed the leading role in implementing the agreed plan to wind-down the business and exit the retail store network.

Result

We effected a solvent wind-down of a large consumer leasing business, including:

• Extensive financial modelling and analysis to support lease store exit strategy.
• Completed a lease surrender and physical exit of a 35-store network within a 12-week timeframe.

All leases surrendered via negotiation with landlords for a circa 20c/dollar payment of total lease liability.