Proven leadership for retailers navigating distress at every scale.
Retail distress moves fast: lease obligations accumulate, inventory depreciates, and customer traffic doesn't wait for a restructuring plan. Lighthouse has served as CEO and CRO for national retailers including Gander Mountain ($1.3 billion) and Wilsons Leather, managing Chapter 11 proceedings, store-level wind-downs, and complex real estate portfolios spanning hundreds of locations.
Retail restructuring is a race against seasonal inventory, lease deadlines, and customer confidence. We bring the operational experience and financial discipline to make fast, consequential decisions — from which stores to close, to how to manage $1 billion in real estate obligations, to when a going-concern sale is still viable.
Appointed as Chief Restructuring Officer to a national outdoor retail chain with 162 locations.
Challenge: Gander Mountain, the nation’s largest outdoor sporting goods retail network, with 162 stores in 27 states was facing an uncertain future. Competition from on-line retailers and over expansion resulted in slowed revenue growth and increased costs. Liquidity issues related to the accumulated losses and seasonality of the business was looming on the horizon, causing concern with the company’s vendors and secured lender.
The Solve: The Client’s board of directors engaged Lighthouse Chief Restructuring Officer. After assessing alternatives, Lighthouse determined that a Chapter 11 bankruptcy filing was the best way to maximize value for the company’s stakeholders.
The Outcome: Working with management, Lighthouse quickly developed a plan to file Chapter 11 and begin a sale process. Lighthouse negotiated the terms of a DIP facility allowing the company time to put its plan into effect. Liquidation sales at the 32 lowest performing stores were started immediately upon the Chapter 11 filing. A stalking horse bid was negotiated and ultimately the company was sold in a 363 auction process. The resulting sale and inventory liquidation paid the company’s secured creditors in full and allowed the acquiring entity to continue or reopened nearly 60 stores across the country maintaining a significant number of jobs and a critical retail outlet for the company’s numerous vendors.
How we support real estate engagements.
1. Store & Portfolio Assessment: We evaluate every location: occupancy cost, four-wall profitability, lease terms, and local market dynamics to determine which stores to keep, which to close, and in what sequence.
2. Inventory & Vendor Management: We manage inventory disposition from GOB sales, transfers, and liquidation while communicating with vendors on outstanding obligations and future terms.
3. Real Estate Strategy: We negotiate lease modifications, rejections, and assignments across the portfolio to manage landlord relationships and minimizing post-petition claims.
4. Chapter 11 or Sale Execution: We guide the business through a Chapter 11 restructuring, a Section 363 sale, or an out-of-court wind-down depending on which path preserves the most value for stakeholders.
The best outcomes start with early action.
The sooner we're at the table, the more options remain available. Reach out for a confidential conversation with our team