Case Study

A leading value brand cosmetics company faced financial distress driven by CEO focus on top line growth with little attention to costs and margins.

Private equity backed with non–traditional lender, P.E. determined not to put more cash into business and lender supportive of a sale via Chapter 11.

Debtor’s counsel was concerned executive management could not prepare company and lead it into a Chapter 11 while assuring impartial governance and decision-making.

Engaged as CRO, displaced CEO from daily management.

Organized and prepared the company and employees for a bankruptcy filing while assuming day-to-day control of all aspects of operations, finance and inter-face with debtor’s counsel.

Gained the lender’s confidence that led to use of cash collateral to fund operations.

A smooth, organized Chapter 11 was filed in Wilmington. 

Led the sales process that yielded a successful sale only 90 days from the petition date.

Big box retailer relationships were stabilized and preserved.

Company value was maintained, and lender determined it was in its best interests to credit bid its debt to acquire the assets for later sale.