Orchestrated sale of family-owned toy and craft distributor facing liquidity challenges through Assignment for the Benefit of Creditors (ABC) process.

This transaction involved a family-owned business specializing in arts and crafts supplies and non-electronic toys, which significantly impacted economic downturns and market shifts. The company, a prominent player with a legacy dating back to the mid-20th century, faced a critical liquidity crisis. The intervention utilized a comprehensive restructuring approach, including operational enhancements, financial restructuring, and a strategic sale process. The company’s product line included innovative arts and crafts that promoted creativity and imagination among young children, sourced primarily from China.

Our Approach
Our role encompassed a full spectrum of advisory services, including strategic assessment, financial restructuring, and the orchestration of an Assignment for the Benefit of Creditors (ABC) auction.
We implemented a stalking horse bidding strategy to stimulate competitive interest, which culminated in a successful sale that preserved the company's operational continuity and stakeholder interests.
Outcomes
The outcome was highly favorable, with the company maintaining its operational integrity and continuing to thrive post-transaction.
All parties, including the original lender, were satisfied with the financial returns, and the company was positioned to continue inspiring creativity in young minds.
This transaction saved jobs and ensured the continuation of a beloved brand in the creative arts space.
Services & Roles
Strategic Assessment
Financial Restructuring
Transaction Advisory
Assignment for the Benefit of Creditors
View More Transactions
*Some engagements may have been performed by team prior to joining Harney Capital.
Ready to Connect? Click here.