Case
Owner of the Old Boy Barcelona – a franchise of the biggest barbershop chain in the world – came to us when the situation was critical: no company performance reports for the last 4 months, blocked access to accounts, warning notices from the tax authorities, social security agency and even the employees. They were unable to connect to surveillance cameras and go to Spain so as to sort the problems out on site.
Mission
- Let’s figure out what’s happening within the company;
- Resolve conflicts with employees and public authorities;
- How to return the business to profitability as quickly, effectively, and with minimal losses as possible.
Solution
We found out that the company’s CEO had misappropriated the amount of fees for 4 months, paid no bills to social services, no salaries to the employees, and even purchased mobile phones on behalf of the company. It all added up to EUR 35,000 in debts;
We executed a notarial act for the replacement of the CEO and obtained access to the accounts, tax reports and social security deductions;
Made a 3-years financial recovery plan;
Negotiated with the creditors for repayment of the amounts outstanding in equal installments;
Interviewed a number of candidates and hired two decent barbers, because the former two employees were illegal.
Result
By the end of 2020, the turnover increased by 10% compared to the period preceding the problems with the CEO. The debt is down to EUR 7,800 from EUR 35,000. As of today, the company is making profit again. No small feat in the period of coronavirus pandemic.