Arts & Crafts Supply Wholesaler

Case Study

Gordon Brothers Winds Down Arts & Crafts Supply Wholesaler

Date July 29, 2021

In 2020, Gordon Brothers was approached by a client with an established relationship to our firm to wind down operations of its wholesale division, a distributor of arts and crafts supplies.

Gordon Brothers structured a transaction, which included a purchase of the inventory and management of all aspects of the wind down including funding of expenses. At the client’s request, Gordon Brothers prepared an offer within 36 hours for the purchase of the inventory, funding for the ongoing operational expenses to run the business in normal course, and an efficient wind down strategy that maximized the asset value while mitigating unnecessary expenses. Upon presentation of our proposal, we quickly agreed on the terms and documented within 28 days.

We assembled a cross-functional team, and the project began amid the extraordinary challenges presented by the COVID-19 pandemic in the early days of the global shutdown. Throughout the sale term, Gordon Brothers and our consultants managed the client’s day-to-day operations. We funded the expenses and began the management transition and the operational wind down process.

Over the next five months, Gordon Brothers managed over 250 employees in three of the wholesaler’s facilities taking every preventative COVID-19 precaution. We maximized the value of the over $100 million in inventory at retail value on hand with the orderly and strategic wind down process.

To ship the inventory, Gordon Brothers worked closely with the client’s personnel to ship approximately 1,000 trucks to approximately 1,750 customers in nine different countries in Central America, the Middle East and Oceania. Shipments were completed within the projected timeframe allowing the client to complete its business wind down. Additionally, Gordon Brothers assisted in the transition of finance, customer service and marketing functions to support the client’s go-forward strategy.

The orderly and efficient wind down of the arts and crafts wholesaler demonstrates our ability to provide turnkey solutions for problems facing both wholesalers and lenders in distress during an ongoing crisis, such as a global pandemic.

As the pandemic continues to affect the marketplace, clients and counterparties can count on Gordon Brothers to provide custom, rapid strategies and seamlessly execute solutions to solve for any complex issue that may arise in the current environment.