Focus Management Group

Industry:

Automotive

Service:

Liquidation

Company:

The company manufactured, marketed, and distributed consumer, commercial, and specialty tires and accessories.

Situation:

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 Scope:

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.

Tasks Performed:

• 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.

Results:

• 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.