Background to the transaction:

Germany based clothing retailer Rudolf Wöhrl SE went into self-administration in October 2016, following a weak sales performance over the previous 12 months.

ERS was engaged by the company to clear stock and trade out a number of stores, firstly during self-administration and subsequently following its exit from that process.

Key trading initiatives:

There were two distinct phases to ERS' engagement:

• Phase 1: The restructuring plan during the self-administration period included the closure of four flagship sites to deliver significant cost savings. To support the plan, ERS provided a guaranteed recovery on the inventory of these stores.

• Phase 2: Following a successful exit from self-administration, ERS was appointed in 2017 to execute an extended store closure process for two outlet stores and run a warehouse sale at the group’s headquarters, in order to clear old and excess inventory.

ERS took full control over the stock clearance programme, including discount strategy, advertising campaigns and financial reporting.  Planned trading periods were 18 weeks for the first phase of work and 20 weeks for the subsequent engagement.

Results:

Results exceeded expectations on both phases of the project

• Sales improved by 165% across the trading period.

• Significantly exceeded projected level of cash return to Woerhl.