Case
In 2019, prior to the pandemic, our client opened two Ruma’s coffee shops in Barcelona. However, this period proved unfavorable for business development, leading the owner to decide on their temporary closure. Despite this, the necessity of covering rent and payroll expenses persisted, ultimately pushing the company to the brink of bankruptcy.
Mission
Cost optimization and securing bank financing to ensure both locations could be maintained.
Challenge
The owner of Ruma’s wanted to keep both locations, although under pandemic conditions, this was practically impossible. We convinced them that it would be better to concentrate on one location and let the other one go.
Solution
- We negotiated with landlords to reduce rent;
- We managed to negotiate with banks regarding loans and partially secured investments;
- We terminated the lease agreement with the landlord who was unwilling to compromise;
- We developed a “Plan B” scenario in case of potential bankruptcy, to ensure the company avoided being “blacklisted” by banks and maintained its financial reputation.
Result
Ruma’s coffee business survived the crisis and became a success story—it was featured on the Forbes platform as an inspiring tale of an entrepreneur successfully running a business in a foreign country.