Libro AG

Libro, Austria’s leading book, CD and stationery retailer, went into administration after a failed turnaround attempt.  The Administrators’ restructured the company in an attempt to preserve as much of the business as possible as a going concern, with employment protection a significant focus.

Gordon Brothers worked with the Administrators to identify the worst performing stores and close them as soon as possible, in order to arrest cash haemorrhage. This involved closing 30 of the poorest performers for a guaranteed return and advance liquidity that enabled the remainder of the estate to continue trading.  Following this, Gordon Brothers provided consultancy and retail support to the Administrator for an extended period, while the sale of the business was being arranged.  In addition to this, Gordon Brothers financed stock over the crucial Christmas trading period in order to generate additional value.

Gordon Brothers helped the Administrators preserve the enterprise value of the business.  After 8 months of Administration, 180 stores were sold as a going concern, with minimum job losses.  After the business was sold, Gordon Brothers worked with the new owners and managed the closure of 14 further stores which were not required.