Our Berkshire-based client who own two French Bistros/Delis approached us late last year as they were facing significant cash pressures. They were in genuine distress over whether they would make payroll at the end of Jan resulting in closure of their business.
Having taken several expensive trade loans in the past 18 months to cover expansion costs and teething issues on the second site, potential defaults on these also added to their woes.
We provided strategic advisory support, consulting them through this critical period whilst we looked for new equity to come in. As we all know, most equity providers being asked to come in so urgently would seek control, and this husband & wife team were reluctant to go down this route.
Obvious issues were addressed including prices increases, better supplier management, agreeing terms with their landlords through H1 2025 and so on.
Hats off to them and their tenacity, they have now traded through the lean period in the year and are back making profits month on month. Once this season is through much of the debt will be repaid, and that will result in better cash flow come next winter.
Our client retains full ownership and now has a strategy in place to ensure long-term profitability. We wish them all the best.
