Failed supermarket group Mycal Corp, which filed for bankruptcy protection on 14 September, has encountered more problems in its bid to restructure its organisation and revealed yesterday [Thursday] that is would be switching its financial advisor to Nikko Salomon Smith Barney (NSSB) from Daiwa Securities SMBC Co (DSS) on October 10.
DSS, which was appointed financial adviser on 18 September, had failed to find a large retailer willing to sponsor Mycal’s restructuring. Mycal revealed that it chose to move to NSSB in order to make cost savings, as the company is already an external adviser to the supervisory committee appointed to oversee Mycal’s restructuring by the court.
Mycal has meanwhile been further troubled by a deepening cash crisis, failing sales and a move by wary suppliers to cutback in stock shipments. Same-store sales fell 17.2% in September as the chain’s shelves were depleted due to a lack of product shipments.