GA Group’s Ryan Mulcunry on retailers’ increasing need for transition financing and the evolution of asset dispositions

On the latest episode of the Debtwired! podcast, senior reporter Danielle Saba speaks with Ryan Mulcunry, Managing Director for GA Group, about the growing need of transition capital in the retail industry and the move to fee based from equity asset dispositions for liquidating retailers.

Ryan has worked with many leading U.S. retail companies, most recently on Joann's liquidation and in connection to Dollar Tree's sale of Family Dollar. He opens the conversation by talking about how has had the same desk at GA through three different owners, from Great American Group to its reverse merger with B. Riley and now its new majority owner: funds managed by Oaktree Capital.

The conversation continues with how the new ownership structure is shaping the firm's plans to raise a sizable fund that will provide loans between USD 20m and USD 200m with the cost of capital structure starting at SOFR+ 600bps. These loans will include FILOS and second liens as well as stretch unitranches using real estate and inventory as collateral.

Ryan explains there is an increasing need among retailers for transition capital due to the tumultuous macroeconomic environment due to trade wars, supply chain pressures and faltering consumer demand.

Ryan also talks about how fee-based asset disposition deals for liquidating retailers will continue to dominate given retailers' capital structures and the belief that bankruptcy estates are maximized with fee over equity deals.

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