Case Studies

Winddown of An Apparel Wholesaler

J.S. Held Acquires GLI Advisors, Strengthening Our Construction Project Support Services in the Western US and Hawaii

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Home·Winddown of An Apparel Wholesaler

The Situation

Apparel Distributor. $20 million in revenue. $6 million of debt.

  • Branded apparel wholesaler and retailer defaulted on loan covenants.
  • Inventory was stored at two separate third-party warehouses located across the country.
  • The field exam revealed fraudulent reporting of collateral values on the borrowing base.
  • Lender terminated the credit facility, the company abruptly shut down its wholesale business, and terminated all employees.

How We Advised

Our experts were appointed Receiver to identify and sell assets to apply against the bank debt.

  • Initiated communications with the wholesale customers, identified unbilled shipments and generated new invoices, and assessed the value of the e-commerce business.
  • Determined incremental value in operating the e-commerce retail business while seeking buyers for the inventory, the retail business, and the intellectual property.
  • Located and organized the records, obtained access to the Inventory, and negotiated agreements with the warehouses.
  • Obtained staff to administer the business wind-down, secured and stored the accounting books and records, archived electronic data and emails, notified stakeholders of the receivership proceedings, and facilitated the claims process.
  • Closed on sale transactions for inventory and business, the net recovery for the secured lender achieved the expectations of the initial budget.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Receiverships 
Federal and state courts, creditors, and legal counsel choose our team to serve as Receiver of distressed businesses and real estate entities. We stabilize operations and cash flow, safeguard business assets, and pursue methods to maximize financial recovery. Our multidisciplinary team applies a wide breadth of restructuring and industry experience as Receiver to take control of companies facing financial, operational, and legal issues.

 

> 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. 

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