Overview:
- Struggling Austria-based home improvement chain bauMax, which operated in nine countries in Central Eastern Europe (CEE), entered into a restructuring process in 2012 as the weak housing market in Europe casused declining sales in DIY stores across the region.
- After the business made a loss of €126 million in 2012, baumax negotiated a €100 million standstill agreement with its 40 Austrian and international creditors and €76 million senior credit facilty to keep it afloat.
- A further restructuiring plan was agreed, which began with bauMax divesting of much of its international businesses to enable it to repay debt.
- First, bauMax attempted to sell its Turkish business but eventually closed its stores there in April 2014 having failed to find a buyer.
- Next, it divested of its Bulgarian business, with investor Hadeus taking over in September 2014.
- That month, the businesses' founders also sold their art collection, recouping €100 million for the creditors.
- In December 2014, bauMax sold its Romanian arm (Wolf Theiss advised) to French group Adeo for €17 million.
- In April 2015, bauMax exited Hungary, with XXXLutz Group acquring the stores.
- In September 2015, Baumax's creditors agreed to write-off €400 million, or 40% of baumax's debt, enabling it to sell what remainded of the business.
- In October 2015, OBI and Supernova acquired 67 stores from bauMax across Austria, Czech Republic, Slovakia and Slovenia for an estimated €200 million.
- In the same month, Merkury Market bought 18 of bauMax's stores in Czech Republic.
- Real estate developer Supernova is leasing the stores it bought to OBI.
- Deloitte was bauMax's financial advisor on the restructuring.
Sam Duke - Editor
Ben Naylor - Regional Editor