Circuit City  
  Client Challenge  
 
Circuit City Stores, Inc., the nation’s second largest electronics retailer, filed for Chapter 11 in 2008.  Protiviti served as Financial Advisors to the Official Committee of Unsecured Creditors.
 
     
  POWERFUL INSIGHTS  
 
As financial advisor, Protiviti’s services have included negotiating the terms of a proposed DIP facility, performing historical and go-forward store-by-store profitability analyses, performing liquidation analyses under a variety of timing and trade credit scenarios, and preparing cash flow analyses with various sensitivities regarding lending, sales, and expense levels. Additionally, Protiviti’s work has included:
  1. Performing analyses to determine the viability of the Company as a going concern under different business models, with different clusters of stores, and under various trade credit and financing options.
  2. Assisting in valuing the business based on management’s projections and valued purchase offers for both the business and IP that included royalty streams equity interests in new ventures.
  3. Assisting in the analysis, negotiation and auction process for the liquidation of many of the Company’s largest assets including inventory, FF&E, intellectual property, and its Canadian subsidiary.
  4. Negotiating stalking horse bids for inventory liquidation and other assets including real property, negotiating professional fees, negotiating the Company’s Management Incentive Plan and retention plans, and assisting in global settlements regarding claims, receivables and avoidance actions.
 
     
  PROVEN DELIVERY  
 

Protiviti is intimately involved with providing a variety of information and analyses to creditors in order to assist them in making informed post-petition trade credit decisions.

How We Help Companies Succeed
Protiviti represents the interests of secured creditors, individual unsecured creditors and unsecured creditors committees. In each of these roles, we work to develop solutions that will maximize overall recovery.  We provide financial consulting services allowing creditors to make confident decisions, gain a better understanding of the debtor’s outlook, and perform administrative tasks which are unique to the bankruptcy process.  Our professionals will assess the feasibility of any plans proposed by the debtor; analyze the cash flow risks and opportunities; review the plan for its tax consequences; and monitor performance following the plan confirmation.  Additionally, we will work directly with the debtor and the debtor’s financial advisors to maximize the return to all interested parties.

Protiviti’s creditor services include:
• Evaluation and negotiation of business and restructuring plans as well as restructuring    alternatives
• Assess and evaluate the debtor’s strategies
• Value the assets of the debtor as a going concern and in a liquidation scenario
• Monitor compliance with DIP financing
• Financial and operational due diligence
• Valuation services
• Preference and fraudulent transfer analysis
• Expert Testimony

 
 
     
  Contact  
 
​Michael Atkinson
Managing Director
+1.410.454.6836
Michael.atkinson@protiviti.com
 
Guy Davis
Managing Director
+1.804.644.7000
Guy.davis@protiviti.com
 
 
     
  About Protiviti  
 

Protiviti (www.protiviti.com) is a global business consulting and internal audit firm composed of experts specializing in risk, advisory and transaction services. The firm helps solve problems in finance and transactions, operations, technology, litigation, governance, risk, and compliance. Protiviti’s highly trained, results-oriented professionals provide a unique perspective on a wide range of critical business issues for clients in the Americas, Asia-Pacific, Europe and the Middle East.

Protiviti has more than 60 locations worldwide and is a wholly owned subsidiary of Robert Half International Inc.
(NYSE symbol: RHI). Founded in 1948, Robert Half International is a member of the S&P 500 index.

 
 
   
     
 
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