GENTRY MEN’S CLOTHIERS

Industry

Retail Trade | Apparel

DSI'S Role

Restructuring Advisor

Services Provided

  • Business Plan Analysis
  • Debtor Advisory
  • Financial Restructuring

GENTRY MEN’S CLOTHIERS

Case Highlights

  • Analyzed leases for the company’s 20 retail locations
  • Renegotiated loan agreement and developed business plan for downsized business

Case Narrative

Gentry Men’s Clothiers operated 20 retail stores in the Midwest, generating approximately $35 million in annual revenues.  The company began to experience operating losses due to changes in men’s styles and expansion into unprofitable markets.  As a result, the company was in violation of its loan covenants and had lost its trade credit support.  DSI assisted in the development of a business plan that included the closing of unprofitable stores, reducing corporate overhead and opening more strategically placed stores.  DSI negotiated the terms of a restructured loan agreement that allowed the company additional funds and time to implement its turnaround plan without seeking bankruptcy protection.