Case Studies
J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response
Read MoreOur client was a $70 million manufacturer of tailored men’s clothing and pants, including those under the Bill Blass and other private labels, for major department stores and specialty shops, headquartered in Philadelphia.
This 98-year-old Company was slow to migrate production offshore and, as a result, had difficulty being cost-competitive. Changes to its licensing agreement with Bill Blass had also reduced margin, and the Company was struggling with the continued consolidation of its retail customer base, its continued focus on reducing costs, and a major loss resulting from the bankruptcy of one of its largest customers. The Company’s shareholder had recently pledged $8 million of marketable securities to support additional borrowings to fund these losses.
Our experts were initially engaged to assist the Company in exploring its strategic options. We quickly concluded that a sale of the Company was in the best interest of the shareholders. Our team developed a plan that maintained the fall business, thereby maximizing the value of the Company’s finished goods inventory, and downsized the Company. We also assumed control of the Company’s cash management and introduced a renewed focus on collecting receivables, while minimizing disbursements. We were able to maintain the support of the Company’s secured lender and spearheaded the negotiations and due diligence process with potential buyers, eventually selling the business to a major industry player. The secured creditor was paid in full, the company avoided bankruptcy, and the vast majority of the guarantor’s collateral was returned, dramatically exceeding everyone’s expectations.
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
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