California-based Roscoe’s (Roscoe’s) is a Soul Food restaurant serving the unique combination of fried chicken and waffles.
The project traces the company’s decline and Chapter 11 Bankruptcy filing in March 2016, and subsequent court appointment of Trustee in summer of 2016.
The Trustee appointed The Next Idea and Triple Enterprises to build infrastructure in both operations and accounting.
Under Chapter 11 management by The Next Idea, Restaurant Consulting and Management group in partnership with Restaurant Finance Group, Triple Enterprises; reporting into court-appointed Trustee, Roscoe’s parent company, East Coast Foods filed a repayment plan in January 2018 that returns the bankrupt business to its owner and repays all creditors in full.
This is a very unusual and favourable outcome for a Chapter 11 business and is a direct result of the operational improvements and financial controls installed by The Next Idea and Triple Enterprise teams.
The result was an ability to show the long-term profitability of the business with a higher than market average cash flow, and thus an ability to repay the entire debt over a reasonable timeframe.
We are delighted to see such a positive result for Roscoe’s and wish them well as they emerge from bankruptcy.
This case demonstrates that it is always possible to turn around a troubled business and emerge without negatively impacting jobs, suppliers or customers.
Keywords :Roscoe’s Inc., Turnaround Strategy,Restructuring Strategy, Business Model, Franchise Model, Strategic Measures, Strategic Inflexion Point, Growth Strategy, Franchising, restaurant marketing