Nationwise Automotive

Situation

Nationwise was a highly distressed, 300-store automotive aftermarket parts chain that had reached a severe financial crisis in 1995 due to increased competition and other factors.

Engagement

Gordian Group was engaged by the Board of Nationwise, at the suggestion of the senior lender, to devise a strategy to maximize value to all constituencies. At the time Gordian Group was engaged, Nationwise was on the verge of liquidation and had lost the support of its senior lender and the confidence of vendors.Gordian Group immediately implemented a communications program with all creditors, and evaluated the few options remaining to Nationwise at that time. The Board elected to pursue a sale, and we were successful in inducing considerable support and cooperation from both the senior lender and the trade during the sale process. Gordian Group was actively involved in assisting management in reducing Nationwise’s cash "burn" and stabilizing operations while a sale process was conducted. We also participated in the strategic evaluation of Nationwise to determine whether all or a portion of the operations could be reorganized as a stand-alone business.

Outcome

Gordian Group conducted a sale program that resulted in the disposition of a substantial portion of Nationwise’s assets through a bankruptcy auction process. As a consequence of such sale, which featured a bidding war between two of the country’s largest automotive aftermarket parts retailers, Nationwise’s secured creditor achieved a full recovery and its unsecured creditors received substantially more value than they had anticipated.Through a successful competitive bidding process, Gordian Group was able to increase total consideration paid by approximately 146% over the initial offer and 30% higher than the next highest proposal.