The Client

Gourmet Kitchens, Inc.

Chicago-based manufacturer of fresh prepared foods and meals for both regional and national grocery stores and retailers.

The Challenge

Sales had dropped off significantly after the loss of a major customer and were not improving. The company had been operating in Chapter 11 for 6 months and the secured creditor was preparing to cut off cash collateral and liquidate the assets.

The Process

The secured creditor agreed to continue funding operations for 45 days to allow Equity Partners to complete the marketing process. Equity Partners quickly generated 3 going concern bids, the value of which far exceeded any liquidation estimate, and successfully negotiated and selected a stalking horse bid for the upcoming auction.

The Solution

Less than 6 weeks after Equity Partners was retained, an auction was conducted with the qualified bidders, during which Equity Partners was successful in increasing the final purchase price by over $7,000,000 from the initial stalking horse Bid. The business was sold to a buyer that closed within 5 business days and continued operations without a single day of interruption.