RMP Partners Facilitates Mid-Market Corporate Restructuring

Overview

RMP Partners was retained as the lead restructuring advisor for a mid-market specialty retailer operating 38 locations across the Southeast United States. The engagement required rapid stabilization of the company's balance sheet while simultaneously managing vendor relationships, lender negotiations, and day-to-day operations.

The Challenge

The client faced a combination of declining same-store sales, an overleveraged capital structure, and a lease portfolio that was significantly above market. With liquidity reserves depleted and a revolving credit facility approaching maturity, the company required immediate intervention.

Our Approach

Our team deployed a cross-functional advisory group comprising restructuring specialists, real estate advisors, and operational consultants. Working alongside legal counsel, we negotiated a consensual out-of-court restructuring that included:

• A comprehensive lease rationalization program reducing occupancy costs by 22%
• A forbearance agreement and amended credit facility with the senior secured lender
• A vendor accommodation program that preserved critical supply chain relationships
• A management-led operational improvement plan targeting $4.2M in annualized cost savings

Outcome

The restructuring was completed within 90 days. The company emerged with a sustainable capital structure, a right-sized store footprint, and a renewed path to profitability. RMP Partners continued in an advisory capacity for six months post-restructuring to support management through the transition period.

This engagement reflects RMP Partners' commitment to delivering results-oriented advisory solutions for businesses facing complex financial and operational challenges.