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● Provision of operational management
● Guarantee of financial outcome
● Creation and implementation of a store
closure programme
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Situation
Associated British Foods plc (ABF) had acquired Littlewoods Stores, a business comprising 120 retail outlets throughout the . ABF intended to transfer some of the stores to its Primark subsidiary, with the remainder being gradually sold to other retailers. ABF appointed Hilco to operate the Littlewoods business until the stores could be transferred or sold. Hilco’s team also had the objective of ensuring maximum gains could be made from the sale of Littlewoods’ stock and other assets over an eight month period – whilst minimising all associated risks. Hilco’s team was responsible for all aspects of the operation.
Action
The key action was the implementation of a detailed operating plan, which took account of all trading, employee and concession matters, creating a flexible framework for the smooth transfer of stores to new owners. Hilco guaranteed the financial outcome from the process and took additional financial risk based on this guarantee.
Result
With Hilco at the helm, each Littlewoods store traded up until its individual transfer date. In each case, Hilco operated a store-closing sale and ensured that all fixtures and fittings were sold and removed from the premises before the handover date. In the final analysis, the financial outcomes exceeded all client expectations.
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