Chain of US Franchised Restaurants

This Group was experiencing difficulty in meeting liabilities assumed when the current operators took over the business from a long standing operator in an ever-changing hospitality industry. The Group was also dealing with legacy issues following the previous administration of the chain.

David Iannuzzi and Vincent Pirina were appointed as Administrators of the Group by the Director.

Veritas Advisory prepared a cashflow analysis to substantiate the Company's future profitability and continued to trade-on the business to retain the employment of its staff and preserve retail leases.  Normal trading of the restaurants resumed during the Administration to ensure that the Group continued to service customer demand.

A nationwide sale campaign was undertaken that attracted 14 interested parties, resulting in negotiations with 4 parties.

A favourable DOCA was negotiated with the Director allowing for a better return to creditors than a Liquidation.

The outcome was:

  • DOCA contributions assisted with a recapitalisation of the Group.
  • An excess of 60 staff across NSW and QLD continued their employment.
  • Four retail leases and supplier relationships were preserved.
  • DOCA was supported by the Australian Taxation Office.

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