Case Studies

Reducing Inventory Allows for Refinancing for Agriculture Distributor

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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The Situation

$90 million Revenue. Agriculture Chemical & Feed Distributor. $20 million Secured Debt.

  • Company decided to ramp up operations while a drop in commodity prices had yet to hit bottom, ultimately causing large losses two years in a row.
  • Agriculture commodity prices dropped causing a ripple effect to the suppliers of chemicals and feed.
  • Large chemical manufacturing companies merged, further causing prices to drop by as much as 25%.
  • The company doubled down on their inventory position in the middle of the turmoil causing large losses two years in a row.
  • Poor accounting and financial disciplines causing a large disconnect between operations and finance team.
  • Seasonal business with liquidity shortage during the late summer and fall season.
  • Heavily reliant upon manufacture rebates to fund off-season liquidity shortage.
  • ABL lender wanted to be refinanced prior to the beginning of the next season.

How We Advised

  • Excess inventory returned to manufacturers to reduce outstanding payables.
  • Aged inventory liquidated to provide additional liquidity for paydown of the secured debt.
  • New accounting system implementation to better track and manage manufacturer rebates.
  • New policies and procedures established between operations and finance to better manage the business.
  • Exit non-profitable manufacturer rebate programs.
  • Inventory reduced by $13 million (60%) to satisfy vendor payables and covenant compliance with ABL lender.
  • Exited several non-profitable manufacturer rebate programs and negotiated higher rebates from long-standing suppliers.
  • Implemented new accounting system to better track profitability and manage rebates.
  • Refinanced $20 million ABL loan to a new lender.

Related Practice Areas

> Turnaround and Restructuring Services
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation.

 

> Debt Restructuring Services
When a company is in financial distress, our Strategic Advisory experts design and implement debt restructuring and refinancing strategies tailored to the company’s unique circumstances. We help middle-market businesses stabilize operations, improve liquidity, and optimize their capital structures.

Key Contact

For additional information about the engagement or to learn more about our services, contact:

Dan F. Dooley
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Dan F. Dooley
Senior Managing Director
Mobile: +1 630 660 8952
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Jericho, N.Y. 11753
+1 516 621 2900
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© 2025 J.S. Held LLC.  

All Rights Reserved.

J.S. Held, its affiliates and subsidiaries are not certified public accounting firm(s) and do not provide audit, attest, or any other public accounting services. J.S. Held is not a law firm and does not provide legal advice. Securities offered through PM Securities, LLC, d/b/a Phoenix IB or Ocean Tomo Investments, a part of J.S. Held, member FINRA/SIPC. All rights reserved.
J.S. Held

Headquarters

50 Jericho Quadrangle
Suite 117
Jericho, N.Y. 11753
+1 516 621 2900
[email protected]

J.S. Held, its affiliates and subsidiaries are not certified public accounting firm(s) and do not provide audit, attest, or any other public accounting services. J.S. Held is not a law firm and does not provide legal advice. Securities offered through PM Securities, LLC, d/b/a Phoenix IB or Ocean Tomo Investments, a part of J.S. Held, member FINRA/SIPC. All rights reserved.
Markets Served

Geographies

Industries

Media Relations

[email protected]

 

© 2025 J.S. Held LLC.  

All Rights Reserved.

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