Apparel Distributor. $20 million revenue. $6 million of debt.
- Branded apparel wholesaler and retailer defaulted on loan covenants.
- Inventory was stored at two separate third-party warehouses located across country.
- The field exam revealed fraudulent reporting of collateral values on the borrowing base.
- Lender terminated the credit facility, the company abruptly shut down its wholesale business and terminated all employees.
- MorrisAnderson was appointed Receiver to identify and sell assets to apply against the bank debt.
- Initiated communications with the wholesale customers, identified un-billed shipments and generated new invoices, and assessed value of the e-commerce business.
- Determined incremental value in operating the e-commerce retail business while seeking buyers for the inventory, the retail business, and the intellectual property.
- Located and organized the records, obtained access to the Inventory and negotiated agreements with the warehouses.
- Obtained staff to administer the business wind-down, secured and stored the accounting books and records, archived electronic data and emails, notified stakeholders of the receivership proceedings and facilitated the claims process.
- Closed on sale transactions for inventory and business, the net recovery for the secured lender achieved expectations of the initial budget.