Focus Management Group

Manufacturing Industry Experience

Men’s Apparel Manufacturer

Company:

$500MM Men's Apparel Manufacturer

Situation:

The Company was among the largest manufacturers and marketers for men's suits and sport coats in the United States. Due in part to changing trends in the clothing market, revenues dropped over the past few years as demand for products had decreased as well.

Focus Scope:

Immediately following the Company’s Chapter 11 filing, Focus Management Group was engaged as Financial Advisor to the Secured Lenders.

Tasks Performed:

  • Reviewed the weekly borrowing base and weekly compliance packages noting issues and discussing with lender group suggestions for changes and revisions
  • Provided close support for the secured lender group and provided on site oversight of the Company’s operations, CRO activities, and various plans and initiatives of the Company and its CRO
  • Reviewed the Company’s 13 week rolling cash flow and advised the lender group on viability of the forecasts and related budgets
  • Examined several aspects of the business projections, sales proposals, prepared liquidation analyses and sales analyses
  • Prepared and distributed a summary of findings report, which was updated as potential bidders for the Company revised, retracted and augmented their bids

Results:

  • The asset sale was completed to the "Stalking Horse" bidder only after working through well-publicized threats of sit-down strikes by workers, last-minute demands by the debtor's management and advisors, and continued industry weakness.
  • Over 2,000 US apparel industry jobs were saved as liquidation of the Company's assets and iconic brands was averted.
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