Delphi carrying out successful reconstruction for café chain in Gothenburg
In January this year, the café chain Condeco AB in Gothenburg was forced into reconstruction. Mercedes Lennartsson Anderås was appointed reconstructor in the case, which has now been completed with a successful outcome.
During 2019, Condeco had a turnover of almost SEK 61 million. But the following year the turnover was down to just under SEK 37 million. The reason for the crisis was completely corona driven and the café chain was marked by a tough period with layoffs, redundancies and debts. But thanks to the reconstruction, the situation has now turned for Condeco. Three out of four cafes in the chain will be able continue its business.
– The business suffered from short-term liquidity problems due to the effects of Covid-19 and it was mainly the rents the company was struggling with. The demand for raw ingredients decreases as the number of guests and staff can be laid off – but rents on large premises in cities like Gothenburg remain at the same level, says Mercedes Lennartsson Anderås.
Through close cooperation with creditors and suppliers, the reconstruction could be carried out with a successful outcome. The reconstructor worked actively with several key people at the company to find solutions that improve the conditions for long-term profitability and a positive cash flow. The case stood out through the great support from the creditors. The support led to the case being able to end with a voluntary composition solution which entails a reduction of 75 percent of all major debts in the reconstruction.
– We saw that there was potential for regaining profitability and avoiding bankruptcy. The company has been trouble-free for all their 35 years, which makes it extra fun that the reconstruction was successful and that Condeco can live on, says Mercedes Lennartsson Anderås.