Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreAs assignee in an Assignment for the Benefit of Creditors (ABC) of a national outdoor furniture retailer/wholesaler facing bankruptcy, our team recovered over $10.6M for the company’s secured lender, significantly surpassing the reported orderly liquidation value, and saved jobs by:
The company was facing bankruptcy resulting from stock keeping unit (SKU) overexpansion, excessive inventory, and escalating expenses. It had defaulted on its loan covenants and lacked sufficient cash flow to meet operating costs. When management failed to remedy the bloated inventory and excessive 3PL storage fees, the company’s secured lender sought solutions to salvage the company’s strong brand reputation and customer base as quickly as possible to optimize its recovery.
Given the company’s liabilities, its secured lender wanted to explore options to call its loan to the company and pursue a liquidation of assets. Management began discussions with a liquidator who recognized the value of an ABC in achieving the company’s goals and referred our team to serve as assignee.
Key Obstacles & Our Solutions
David Stapleton, CPA, CLPF
Senior Managing Director
Strategic Advisory Practice
+1 213 235 0601
[email protected]
Jake Diiorio
Managing Director
Strategic Advisory Practice
+1 213 235 0609
[email protected]
Cooper Plyler, CPA
Director
Strategic Advisory Practice
+1 213 235 0610
[email protected]
> Assignment for the Benefit of Creditors (ABC)
As Assignees, our financial and operational experts leverage extensive restructuring experience to liquidate assets and quickly maximize proceeds for creditors while mitigating liability and preserving jobs. Our team serves as the distressed business’s de facto CEO and CFO, taking control of operations; managing creditors, employees, and litigation; preparing for and executing the sale of business assets; and distributing proceeds to creditors pursuant to priority.
> 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.