Retail Store Fixtures Manufacturer

Company Overview

Retail store fixtures manufacturer primarily for Sears.

Engagement Overview
The Company experienced a dramatic decrease in volume stemming  for one major customer in early 2005. Fort Dearborn was engaged to improve profitability and assess the Company’s strategic options.

FDP identified and initiated a number of profit improvement and cost reduction measures to stabilize the business including:  price increases, expense reductions and a reduction in force.  These actions resulted in the Company generating positive income from operations.

Fort Dearborn assessed the viability of the business preparing multiple-case scenario analyses and determined that a sale/wind down strategy would provide the most benefit to all stakeholders. This effort allowed ownership to make a timely decision that ultimately led to maximizing value as the Company was marketed for sale while the Company was still operating.

FDP initiated an Assignment for the Benefit of Creditors (ABC) and assisted the assignee with the wind down of the estate and day-to-day operations after the departure of the President, CEO and Operations Manager.  Fort Dearborn also prepared communications and negotiated with creditors in order to avoid bankruptcy and minimize wind down costs. 

FDP assisted with the auction of the wood manufacturing equipment.

FDP was the Company’s financial advisor and assisted in all aspects of the expedited sale process including: preparing the information memorandum and related financial analyses.
Results
Successfully avoided bankruptcy filing and maximized the return to all creditors:
  • Senior secured lender paid-in-full
  • Eliminated ownership liabilities to the Company and to creditors
  • Negotiated settlement with multiple equipment lessors improving value to all stakeholders