Chain of Discount Grocery Stores
Roles
Expert Witness
CONTACT US
Do you have any further questions? How can we help you? Get in touch with us.
Carmen Barrett
Managing Director, Other Professionals
Carmen Barrett is a seasoned financial and operational leader with more than 25 years of experience working with publicly traded and privately held companies across a variety of industries.
Alicia Moosally
Managing Director, Other Professionals
Alicia Moosally has over 20 years of experience in financial restructuring, litigation support services, financial and operational analysis, strategy, forensic accounting, and business valuation.
Bill Roberts
Managing Director, Other Professionals
Bill Roberts has more than 35 years of diverse business experience across diverse industries serving in numerous roles including public accountant, senior financial executive, government program director, and consultant.
Suzanne Roski
Senior Managing Director | Partner, Partners
Suzanne Roski has nearly 40 years of professional experience with 25 of it providing troubled company, litigation, forensic investigation, and valuation consulting.
- Provided rebuttal report and testified during deposition
- Client granted favorable summary judgment
Licensor of a chain of discount grocery stores brought an arbitration claim against the licensee for multiple agreement failures and the licensee served a counterclaim and engaged an expert that valued the economic damages incurred due to alleged misrepresentations. CR3 Partners was engaged by the licensor’s counsel to provide an independent analysis of marketing materials, financial data, and an opinion on the accuracy of projections, as well as to provide rebuttal report and court testimony. The arbitration panel granted summary judgement in favor of licensor.
The Situation
- Licensee purchased 26 stores from licensor of chain of discount grocery stores and entered into license and supply agreement as well as agreed to be personally responsible for licensee’s obligations to licensor
- Licensor brought arbitration claim against licensee for failure to pay for inventory, failing to transfer and pay for utility bills, and failing to repay loan from licensor; total value of claim was approximately $18MM
- Licensor served notice of termination of license and supply agreements and triggered 120-day exclusive purchase option
- Licensee served counterclaim alleging misleading and fraudulent marketing materials that promised certain level of profitability that licensee could not achieve
- Licensee engaged expert that valued economic damages incurred due to alleged misrepresentation at $28MM
The Work
- Engaged by licensor’s counsel to provide independent analysis of marketing materials, financial data, and opinion on accuracy of projections
- Analyzed Confidential Information Memorandum and supporting financial forecasts and determined they were fairly and accurately calculated
- Further analyzed expert’s calculations of economic damages and developed opinion that but-for analysis used to calculate damages was flawed and poor quality of underlying data rendered it unreliable
- Provided rebuttal report and testified during deposition
The Results
- Arbitration panel granted summary judgement in favor of licensor in amount of approximately $20MM
- Judgement addressed both original claim by licensee as well as any legal and professional fees
Explore Insights
View All
Article
Respect Your Retail ABL Lender
Asset based loans (ABLs) are used by most retailers because they are secured by physical assets, in most cases inventory and accounts receivable (AR), thus they have a higher likelihood of being repaid in the event the company becomes distressed.
Article
Keys to Ensuring a Successful Roll-Up
Roll-up mergers can create significant value through scale and cost savings, but not all roll-ups perform as expected. Speed of integration may be the most challenging factor when acquiring and consolidating multiple assets.
External Link
The JCPenney Bankruptcy: An inside view from a shareholder perspective
Reed Smith's Keith Aurzada joins William Snyder and Dawn Ragan, both of whom served as financial advisors to the equity committee in the JCPenney case. Our speakers explain the valuation of JCPenney assets and how restructuring support agreements shaped this case.
Video
CR3 Partners Introduces New Richmond Office
CR3 Partners is delighted to introduce you to our new Richmond office and our new litigation consulting service offering. Here is some more insight into what the Richmond team brings to CR3 and a little more about them individually.
News
CR3 Partners Adds New Service Offering and Continues to Expand
CR3 has appointed new Partner Suzanne Roski to expand and lead this practice in our new Richmond office. Suzanne's background includes over 35 years of professional experience with troubled companies, litigation, forensic investigation, and valuation consulting.
Article
How Much Capital Do Companies Need for Post-COVID Recovery, and Who Will Provide It?
CR3 Partners' clients and referral sources agree that additional capital will be needed to return operations to the "new normal" after COVID-19. But how much capital will they need, where will it be deployed, and who will provide it?
Video
CR3 Conversations: Restaurant Industry During COVID-19
The restaurant industry has been one of the hardest-hit industries during COVID-19. Director, Kep Sweeney, gives advice on how to best navigate through it and shares what his current client has done to actually improve during these difficult times.
News
CR3 Partners Adds Two Partners
CR3 Partners is pleased to announce that Sean Cunningham has joined as a Partner of the firm and will be based in its New York office. David Tiffany has been elevated to Partner of the firm in the Los Angeles office.
News
CR3 Partners Honored with Two Turnaround Atlas Awards at 2019 Global M&A Network Annual Gala
CR3 Partners is pleased to announce that the firm was awarded two Turnaround Atlas Awards on May 20, 2019 at the Global M&A Network Annual Gala.