By providing principal investment through the purchase of assets as well as operational support, Flavours gained the flexibility to turn around its business and position itself for an acquirer to restart and grow the facility.
Generous fee-based remuneration with significant success-based bonus
When Flavours, a private label bottling and flavored drink manufacturer, faced financial strain, Gordon Brothers stepped in to provide its employees with an opportunity to grow the company.
Flavour’s assets, including machinery, equipment, inventory, and accounts receivable, were pursued by multiple parties in a competitive bidding process after its lenders foreclosed on the assets. Rather than bid on the assets to be auctioned off piecemeal, we recognized an opportunity to achieve a far greater recovery by selling the assets in place, justifying a more aggressive bid.
After purchasing the assets outright, we were able to position them as a single operating entity. We renegotiated contracts to provide an opportunity to restart the facility under a new ownership group consisting of former employees. Based on initial positive results, we took on capital risk as the secured party and guarantor for the new entity to support its growth. The employee group successfully turned around the business and today the company, renamed Aseptic Technology, is healthy and thriving.