A Chicago-based retail display and fixturing company that had been hit hard by multiple customers cutting orders within a few months of each other.
The company had seen a significant drop off in sales and was in technical default with their lender. With only 3 weeks remaining under the current forbearance agreement, Equity Partners was retained.
The secured creditor agreed to extend the forbearance agreement and continue funding operations for 30 days to allow Equity Partners to complete their marketing process.
Equity Partners quickly generated significant interest in the company and was proceeding towards a sale. During this time, the Chinese operations of the company shut down, creating a major hurdle to customer supply. Interest waned and the company was close to liquidation when Equity Partners successfully negotiated a stalking horse offer from 3 going concern bidders. The value of the bid far exceeded any liquidation estimate and we closed the transaction without a single day of interruption, saving the company from what appeared to be an inevitable shutdown and liquidation.