bauMax restructuring

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