GOLD COAST RESTAURANTS D/B/A LEVEROCK’S

Case Highlights

• Negotiated cash collateral agreement to fund business assessment
• Crafted plan to downsize some locations and to dispose of others

Case Narrative

Gold Coast Restaurants, Inc. operated a chain of casual dining seafood restaurants in Tampa Bay and Southwestern Florida.  The company suffered a series of setbacks including declining tourism and sales after the September 11th attacks, price and advertising competition from major casual dining chains, ill-timed menu changes not well received in the marketplace and a fire casualty loss.  DSI was retained to consult with the company to reduce overhead, restructure debt, stabilize the company and explore its options.  DSI negotiated use of cash collateral to fund the initial assessment phase of the project.  Once the assessment was complete, it was ascertained that the business was unable to generate a positive cash flow during the many months of the slow, non-tourist winter season.  A plan was crafted to immediately downsize some locations and attempt to salvage other locations via a sale or alternative use.  DSI structured a sale and consensual turnover of a number of locations to seed a fund for a liquidating plan.