Managing liquidity and bankruptcy for an outdoor products retailer while executing a successful sale​

Picture this...

You’re a $1.5B outdoor products retailer with more than 160 retail locations across 27 states. But you’re struggling — you’re unable to fund interest payments and pay lenders, and management forecasts running out of liquidity in less than 5 months. Two of your lenders are already advancing a combined 102% of NOLV for inventory, and equity holders are unwilling to contribute capital. As it stands, you have 85% of your sales concentration in brick-and-mortar, with the remaining 15% coming from e-commerce and catalog. You need to recalibrate…but you’re not sure how. ​

You turn to Accordion.

Your secured lenders engage us to help you change course. We jump right in and:​

• Sensitize cash flow forecasts, working with you to develop a disbursement strategy to preserve liquidity.​
• Help evaluate the sales process and timeline to ensure you and your lenders are aligned. ​
• Review strategic options to create additional runway, including vendor management, store closings, and bankruptcy filing timing. ​
• Advise on key components of stalking horse and agency agreement submissions specific to large-scale retail liquidations.​
• Support the auction process with bid valuations, term negotiations, and strategic oversight. ​
• Ensure that the bankruptcy filing and stalking horse process occur in a timely fashion. ​

Your value is enhanced.

You successfully manage liquidity and execute a bankruptcy filing/orderly liquidation and sale that returns full value to your secured creditors and over $20M in additional value above the stalking horse bid, joining a new family of sporting goods companies.