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Case Studies Retail, Consumer Products & Direct Marketing

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Resilience and Recovery

The Engagement

Conway MacKenzie was referred into the debtor company by the company’s lender. The company, a $50 million portfolio company of a middle-market equity sponsor, was in default and operating under a forbearance agreement with strict milestones that were in place to facilitate a sale of the assets, in order to repay the lender.

Our Role

Conway Mackenzie quickly stabilized cash flow and provided visibility into the near and long-term liquidity and performance of the company. Based on the projections created by Conway MacKenzie and analysis of the market, a near-term sale seemed unlikely to occur. Conway MacKenzie and the company, with the consent of the lenders, worked on a new plan to refinance the approximately $20 million of senior and mezzanine debt.

The Result

The plan was successful and the lender was paid in full (with fees and interest). The company is now positioned for recovery and future growth.

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Positioned For Future Growth

The Engagement

As part of a larger interim management engagement related to a private equity portfolio, a Conway MacKenzie professional served as an interim board member and restructuring advisor to a $45 million manufacturer of consumer gift cards and other promotional products for some of the country’s largest retailers.

Our Role

Conway MacKenzie was involved in facilitating a $15 million refinancing agreement with a new senior lender that resulted in a partial pay down of the company’s high-interest subordinated debt. In addition, Conway MacKenzie was involved in facilitating the acquisition of new capital equipment to address growing backlog issues. Conway MacKenzie was involved in other operational aspects of the business, including build-out scenarios to facilitate future growth and review and analysis of selective bolt-on acquisitions.

The Result

As a result of our role on the board and interaction with the company’s senior management, the company is positioned for future growth and immediate, increased EBITDA performance.

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Strategy. Execution. Results.

The Engagement

Conway MacKenzie provided financial advisory services, interim management and board directorship to a furniture retailer.

Our Role

Conway MacKenzie evaluated restructuring options and developed a course of action that would allow the company to survive. After months of negotiation with the company’s secured lenders, suppliers and landlords, an out-of-court workout strategy was put into action.

The Result

Through this process the secured debt was satisfied, a major creditor agreed to forgive its debt and fulfill outstanding orders, a license was sold to another operator and unsecured creditors recovered significantly more than they would in a bankruptcy. Most importantly, the family was able to retain the company’s intellectual property and continue operating its heritage brand from its historical location. Ultimately $60 million of debt was resolved through an out-of-court workout. Due to the involvement of Conway MacKenzie, creditors were pleased with the outcome as they realized results exceeded all other alternatives. The company was able to continue operating as a furniture store and the community retained one of its longest operating companies.

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