Galaxy Brand Holdings, a Carlyle Group portfolio company, was interested in acquiring the IP and design capability of the Avia and Nevados brands from Brown Shoe without assuming responsibility for the supply chain orderly wind-down. Galaxy intended to transition the business to a licensing model and approached Gordon Brothers to find a solution for the unwanted assets to facilitate the transformation. At the close of the deal, we purchased the inventory, equipment and other hard assets outright and assumed responsibility for all operational and financial functions.
Over the following six months, we managed the fulfillment of all legacy production commitments and maintained responsibility for the selling process, supply chain and finance functions to facilitate the transition to a horizontal, pure-play licensing platform. Because of the future licensing prospects, retaining the brand value and key relationships with customers and vendors was a critical sensitivity. Galaxy successfully licensed the IP and began to supply new product to the marketplace almost simultaneous to the completion of our wind down activities. All excess inventory was sold overseas and via discreet domestic channels to preserve the brand value for its re-launch by the new licensee at major retailers, including Wal-Mart Stores.