Case Study: Graham’s Café – Navigating COVID-19 Debt Challenges
The Situation:
Graham owned a café in Melbourne that was struggling due to the COVID-19 pandemic. He couldn’t keep up with lease payments and had accumulated significant debt with the Australian Taxation Office (ATO).
The Challenges:
- Mounting debt with the landlord and the ATO
- Reduced income due to COVID-19 restrictions
- Risk of losing the business
LemonAide’s Approach:
- Assessed the business’s viability without the debt burden
- Negotiated with the landlord for rent dispensation
- Restructured the business to deal with the ATO debt
- Introduced Graham to resources to help him stay on track
The Outcome:
- The business was saved and restructured
- Debt was managed through liquidation of the old company
- The café now operates profitably, with consistent weekly earnings
- Graham retained his business and livelihood
Key Takeaways:
- Proper assessment of business viability is crucial
- Negotiation with creditors can provide breathing room
- Restructuring can offer a fresh start for viable businesses
- Ongoing support and resources are important for long-term success
Facing similar challenges?
