The Company

Southern Apparel Corporation

This Tampa based apparel company designed, marketed and manufactured top quality decorated active-wear and corresponding promotional merchandise.

The Challenge

After experiencing significant cash constraints from its manufacturing operation, the acquisition and creation of several new divisions, as well as the use of high interest receivables factoring, creditor’s cut-off financing and the company was quickly being forced to shut down. The company had  little to no hard assets and several million dollars in both secured  and unsecured debt.

The Process

Equity Partners was retained to facilitate a solution for the company that would eliminate in-house manufacturing to allow management to focus on sales and product development, downsize their facility, and replace the current factoring arrangement with conventional bank financing.

The Solution

Equity Partners quickly identified a successful apparel manufacturer, looking to get into the markets being served by Southern Apparel. Equity Partners structured a joint venture partnership between the two companies creating a Newco, where SAC management would be given an equity interest , employees retained, and a percentage of profits from Newco were to be used to pay down the SAC outstanding debt. The company continues to operate in a newly leased sales facility in the Tampa Bay area.