Focus Management Group

Manufacturing Industry Experience

Ready-to-Assemble Furniture Manufacturer

Service:

Liquidation

Company:

$225 Million Ready-to-Assemble Furniture Manufacturer & Distributor to Major Retailers

Situation:

An RTA furniture manufacturer was experiencing declining sales and profitability and steadily running out of liquidity.

Focus Scope:

Focus was engaged as CRO to perform a cash flow analysis to determine its true cash position and to make recommendations on a course of action.

Tasks Performed:

  • Following their analysis, Focus Professionals determined that an additional equity fusion was needed in order for the Company to survive.
  • When neither the lender nor the equity sponsor was willing to provide this, an attempt was made to sell the business, which was unsuccessful, and, ultimately, the Company was forced into liquidation.
  • A Focus Professional was then engaged as Chief Restructuring Officer on behalf of the Company and its Board of Directors to effectuate the liquidation.
  • In this capacity, the Focus Professional collected receivables and successfully sold off all real estate holdings.
  • Our Professional also managed the Company’s operations for 75 days while all intellectual property was successfully sold to a leading competitor.
  • As part of the sale, plant operations needed to continue while the purchaser moved the new business into their own facility.

Results:

  • The sale of the Company’s intellectual property was maximized.
  • A significant amount of inventory was disposed of at cost, resulting in a recovery that exceeded the expectations of the stakeholders.
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