Tire Manufacturer and Distributor
Company:The company manufactured, marketed, and distributed consumer, commercial, and specialty tires and accessories.
The company determined that its future was jeopardized by the U.S. government’s elevated countervailing duties on imported Chinese passenger and light truck tires. A countervailing duty rate of 81.29 percent was imposed on the company’s supplier, which produced the majority of its brand tires.
Focus was engaged to review and analyze a company-prepared liquidation analysis, orderly wind down budget and timeline plan with a view towards the sale / liquidation of the company's collateral.
- Inventoried the assets for liquidation.
- Undertook an immediate review of Company’s open orders.
- Reviewed and assessed strategy designed to maximize collection of residual accounts receivable balances and liquidation of assets.
- Reviewed Company’s final record retention strategy (Electronic and Hard Copy).
- Reviewed the companies’ strategy for wind down of any 401K, Employee Health and other Benefits programs.
- Focus also prepared an analysis of sources and uses of cash for the preceding 90 days.
- Focus reviewed and made recommendations concerning the company’s options, including: a dramatic scale-down of the business model, a refinancing and/or capital raise, a strategic sale and an orderly liquidation.