Look & Listen Group (Pty) Ltd
This retail entertainment company was placed in Business Rescue, primarily due to a depressed economic climate, specifically within discretionary retail product categories such as music, gaming and movies.
As a result of the majority of the 25 stores no longer trading profitably, leases were cancelled or renegotiated and the head office was relocated, thereby decreasing monthly fixed costs. Retrenchment of staff and where possible voluntary retrenchment agreements were entered into with full severance being paid, and inventory was consolidated.
To make the Plan attractive to ensure its successful adoption and implementation, a cash contribution was secured from the shareholder.
This successful restructuring allowed the company to continue to exist on a solvent basis. Creditors received a higher dividend than they would have received in the event of liquidation and approximately 240 jobs were saved.
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