Sporting Goods Distributor

Sporting goods distributor supplying both specialty retail and big box accounts throughout the country. A&JC was initially engaged by the company to review the cash requirements for ongoing operations to be presented to the company’s secured lender. A&JC quickly determined that the extent of the cash need was significantly larger than management and the secured lender had anticipated. Accordingly, rather than funding ongoing operations, ownership and the lender decided on a liquidation plan to maximize recovery on the remaining assets.

At the outset of the engagement, the secured lender had significant concerns regarding the recovery on its loan and ownership recognized the lack of in-house management capabilities. As a result, A&JC was engaged as Interim Chief Operating Officer to facilitate the liquidation of the remaining assets that consisted mainly of unsold inventory with a cost basis of in excess of $3,000,000 and over 96,000 SKUs. When offers from various discount retailers and excess inventory liquidation firms failed to achieve anticipated returns, A&JC implemented a successful sales plan to existing customers that liquidated almost the entire remaining inventory and generated sufficient funds to fully repay the secured lender.