The Dunlap Company was a family of “homegrown” department stores operating under ten name plates across eight states. Due to the stress of increased competition, the company made the decision to close its doors. Gordon Brothers structured a solution to efficiently wind-down the company. We assumed operational and financial responsibility of the 38-store portfolio and corporate office, and purchased over 95% of the unsecured claims for all creditors. In addition, we managed all central services such as shipping and processing of goods, insurance, systems (POS, MIS, etc.) and human resources during the store closing period, while we negotiated lease terminations and arranged subleases for all locations.
In an effort to maximize recovery values, we purchased $50 million of additional inventory to be included in the sale. The increased margin results created value that was ultimately distributed to the unsecured creditor pool. The short and successful wind-down generated nearly $1 million in savings for the company in lease liabilities, while settling over 85% of lease claims as we monetized $102 million of retail inventory as well as furniture, fixtures and equipment.