Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreA $150M, family-owned manufacturer of Mexican-style cheeses and cream products with nationwide distribution was forced to suspend operations following the discovery of Listeria monocytogenes linked to certain cheese products, triggering voluntary recalls and extensive regulatory scrutiny. The Company entered into a Consent Decree with the FDA requiring significant remediation, enhanced controls, and third-party oversight. As a result, production was shut down for approximately 16 months.
The prolonged interruption caused $10M in accounts receivable and inventory write-offs, over $75M in recall-related litigation exposure, and covenant defaults on $11M of secured credit facilities. It also created acute liquidity pressure and strained the Company’s relationship with its senior secured lender. After owner capital infusions and a phased restart in 2025, the Company entered Chapter 11 to stabilize operations and address its liabilities.
Shortly after the production shutdown, J.S. Held was retained by the Company, at its corporate counsel’s recommendation, to provide comprehensive financial advisory services and bankruptcy support throughout the restructuring.
Our experts guided the Company through a successful Chapter 11 process and §363 sale. This outcome drastically improved recoveries from negligible amounts to 100% for the secured lender, subordinated secured lenders, and priority creditors. It also preserved jobs and enabled the Company’s legacy to continue through a vertically integrated new operation. Our key actions included:
> Bankruptcy Advisory
Navigating bankruptcy is inherently complex, often involving struggling businesses, litigation, incomplete or inaccurate financial records, potential fraud, and other challenges, in addition to strict court-mandated processes. Our experienced team of turnaround and restructuring experts seamlessly guides clients throughout the process to optimize outcomes for lenders, creditors, shareholders, and employees.
> Solutions for Distressed Situations
We deliver integrated solutions for distressed and insolvent businesses that maximize recovery, mitigate risk, and restore enterprise value. Our experts are retained to help distressed organizations stabilize operations, protect stakeholder interests, and execute turnaround strategies. We take an operationally-focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth.
For additional information about the engagement or to learn more about our services, contact:
