Financial Advisor for Furniture Retailer Which Grew Too Quickly and Had to Wind Down the Operation
The company failed at instituting a rapid deployment model, opening clusters of stores in cities that were very geographically diverse. This model created an operating infrastructure that was too large and too costly. The company engaged Inglewood to help evaluate its options, which were at this point severely limited. Given the inability to advertise due to the lack of funds, the inability to restock stores due to the significant amount of trade payables, and the impact of one of the worst markets for home furnishings in many years, the company was not able to meet the minimum operating targets. Inglewood then assisted in the development and implementation of a wind down plan, assisted with the sale of various markets to new owners, and negotiated with the company's bank to accept a reduced payment on the outstanding balance and to waive the balance of the owner's personal guaranty. The owner was very grateful to have the balance of the personal guaranty waived. The bank workout officer stated that this could have easily become a battle with the estate being eaten up by professional fees. As a result, he felt that bank would have never obtained the amount of recovery that it did but for Inglewood's involvement.