Engagement Results

Company:

Willcox & Gibbs, Inc. and four (4) subsidiaries

Annual Revenue:

$85 million

Industry:

Textile Distribution / Service

Expertise:

Recovery and Sales of Assets/Company

Assignment:

Willcox & Gibbs was a leading distributor of supplies and equipment to the garment and sewn products industry. The company was the second oldest sewing machine company in the United States, with 146 years of corporate history. The organization had five U.S. based companies and one European division which struggled in a price competitive market that had seen the vast majority of industry players move off-shore. The company had a significant debt load after completing several unsuccessful acquisitions. Management had a “hands-off” style in a business that required significant attention to detail.

Actions:

MainStream provided the secured lending group with a recovery valuation analysis that outlined cash receipt expectations and a project operating budget and timeline. Outlying facilities and the equipment they housed were secured and inventories were verified and consolidated. Leases were rejected on facilities no longer required under the bankruptcy filing.

MainStream identified prospective buyers for the trade names, patents, customer lists and other intangible and intellectual property, as well as the distribution handling equipment and remaining inventory. Efforts were focused on strategic buyers interested in expanding and strengthening their branding and distribution capabilities.

Results:

All business lines and associated inventories were sold and closed in five transactions completed in approximately 6 months. The financial targets originally established by the lenders were exceeded with the final result being 121% of their objective.