Receivership Sale: How Ladalow Enterprises' Operating Assets Were Sold

When a profitable business unravels after a bad acquisition, speed and structure decide how much value survives. In the receivership of Ladalow Enterprises, operating as the Fussy Cleaners dry cleaning chain, a court-supervised receivership sale of operating assets closed just three weeks after Inglewood's initial appointment.

How a Profitable Chain Ended Up in Receivership

Fussy Cleaners operated a chain of dry cleaning stores in Northern Ohio and was profitable until late 2007, when the company acquired a competitor that brought it up to 40 locations. The deal proved to be a very poor acquisition. Combined with the failing health of the owner, it pushed the company to agree to be placed in receivership.

What Inglewood Did in the Receivership

Once appointed, Inglewood stepped in to stabilize the business and move toward a sale that served every stakeholder. The work included:

• Oversaw the day-to-day operation of the business;
• Coordinated the due diligence process with the proposed buyer;
• Contacted and assessed the prospects that alternative buyers could close a transaction in sufficient time;
• Dealt with numerous secured and unsecured creditors;
• Dealt with the numerous landlords for the closed locations, coordinating the removal of equipment and the turnover of the premises;
• Prepared an analysis for the Court demonstrating how the sale of the operating assets was in the best interest of all stakeholders;
• Assisted with the sale of the operating assets of the business, which closed three weeks after Inglewood's initial appointment; and
• Identified a buyer and sold the non-operating assets of the business.

The Outcome

The operating assets were sold within three weeks of appointment, and Inglewood separately identified a buyer for the non-operating assets. A fast, well-documented process kept the business running through the transition and gave the Court a clear basis for approving a sale in the best interest of all stakeholders. It is the same disciplined approach Inglewood brings to selling a business under pressure.