The Company

Hudson Industries, Inc.

A Richmond based manufacturer of foam, fiber, polystyrene, and gel products servicing the medical, consumer bedding, and casual furniture industries.

The Challenge

The Company had been shutdown for months following a fire and subsequent inventory loss of $4 million. Once operations resumed, the backlog had grown to a level that necessitated increased labor to meet customer demand. Despite incredible top line growth, the inefficiencies in the operation caused massive monthly losses and the lender was no longer willing to fund the business.

The Process

Equity Partners was retained to quickly find a buyer for the Company. Due to Equity Partners’ involvement, the existing lender was comfortable enough to extend the forbearance agreement continue funding operations while an exhaustive marketing process was conducted. In addition, through regular conversations with critical vendors, Equity Partners was able to convince them to continue supplying raw material.

The Solution

Through a competitive auction process, two separate buyers were identified; one for the real estate and one for the business assets. The business buyer entered into a lease with the real estate buyer and continued operations in place, providing continued employment for the shareholders and maximizing recovery for creditors.