Allowed this hosiery manufacturer and its lender to recover a significant portion of its investment and transitioned the business to a new ownership structure, extending the lifespan of the Peds brand.
Generous fee-based remuneration with significant success-based bonus
International Legwear Group (ILG) was a North American designer, manufacturer and distributer of socks and other legwear products. After observing some financial strain, ILG’s secured lender engaged Gordon Brothers to appraise the company.
Based on the findings of the valuation, the lender elected to monetize ILG’s assets and within a short timeframe, we were able to provide a multi-asset purchase agreement to provide an exit for the company and the bank. The bid leveraged our own balance sheet and the expertise of our disposition practice to creatively structure a solution that achieved the highest recovery on the raw material, work-in-process, and finished goods inventory; accounts receivable; intellectual property, including the Peds brand; fixed assets; and real estate.
We were soon able to identify a strategic buyer, Richelieu Group, a Canadian legwear manufacturer and distributor, in an adjacent space to acquire a significant portion of the assets, including the Peds brand. This arrangement supported the maximum recovery of the hard assets while protecting and extending the lifespan of this well-loved consumer brand. Within months the buyer was operating out of the facilities formerly owned by ILG and fulfilling orders to existing customers.