L&L Foods

Situation

L & L Food Centers was a chain of 12 grocery stores and pharmacies based in Lansing, Michigan. The Company was founded in the early 1900’s and under management of fourth generation family members.

The markets in which L&L operated were changing due to the advent of smaller specialty grocers and big box stores. The strategy of the Company and their business model required change. Additionally, many of the Company’s investments did not prove to be fruitful and compounded their losses.

Solution

Amherst was retained by L & L to assist in evaluating its strategic options after it had sustained substantial operating losses.

Amherst conducted a company-wide evaluation of the operating performance and market position of its major assets, along with an assessment of the company’s capital structure.

The outcome was that the Company’s position was beyond repair and the business would be unable to cure its covenant breach with the senior creditors.

Results

Within 60 days of beginning our engagement, Amherst fully implemented the planned strategy.

The company emerged with a tight focus on core operations, the senior bank debt was fully paid out, additional new credit availability was obtained in the refinance, vendor debt was restructured without discounts, and customers received uninterrupted service throughout the process.