Gordon Brothers, the global asset experts, facilitated Soft Surroundings’ going concern sale to Coldwater Creek through the U.S. women’s clothing and accessories retailer’s filing of Chapter 11 bankruptcy in September.
Coldwater Creek, a U.S. women’s apparel, accessories, shoes and home décor retailer, has acquired Soft Surroundings’ direct-to-consumer business allowing for the entire collection to continue online at softsurroundings.com and the preservation of jobs.
Gordon Brothers leveraged its integrated service offering to provide capital, expertise and guidance on the sale process prior to, during and post-bankruptcy, maximizing value for all stakeholders.
“With our deep expertise, 120-year history working with retailers and knowledge of restructuring, we understood Soft Surroundings’ situation and intervened early to avoid a full liquidation,” said Kyle C. Shonak, Senior Managing Director, Transaction Team & Head of North America Lending at Gordon Brothers. “We advised both companies and navigated the formal restructuring process to maximize the value of the assets in which the retailers, their employees and their stakeholders all benefited.”
Gordon Brothers had provided Soft Surroundings a $17 million term loan to pursue a sale process and $18 million in debtor-in-possession financing for its plan of reorganization. The firm had previously supported the completion of Soft Surroundings’ inventory transition to a Mexican-based third-party logistics warehouse service.
“In pursuing the acquisition of Soft Surroundings’ direct-to-consumer business, we greatly benefitted from Gordon Brothers’ partnership over the last few months, their expertise and all-encompassing, tailor-made solution,” said David Walde, Chief Executive Officer of Coldwater Creek. “They not only provided capital, but the guidance and expertise needed to acquire the business through the company’s bankruptcy proceeding at an accelerated pace, thereby saving jobs, maximizing value, and working with all parties to ultimately change the lens in how we had initially approached the opportunity.”
Gordon Brothers provides both short- and long-term capital to clients undergoing transformation. The firm lends against and invests in brands, real estate, inventory, receivables, machinery, equipment and other assets, both together and individually, to provide clients liquidity solutions beyond its market-leading disposition and appraisal services.
Gordon Brothers partners with management teams, private equity sponsors, strategic buyers and asset-based lenders globally to provide its expertise and additional capital in special situations. The firm’s tailor-made solutions provide clients additional capital alongside traditional debt and equity, and its structures complement senior asset-based lending facilities and include credit and yield enhancements.
About Gordon Brothers
Since 1903, Gordon Brothers (www.gordonbrothers.com) has helped lenders, management teams, advisors and investors move forward through change. The firm brings a powerful combination of expertise and capital to clients, developing customized solutions on an integrated or standalone basis across four services areas: valuations, dispositions, financing and investment. Whether to fuel growth or facilitate strategic consolidation, Gordon Brothers partners with companies in the retail, commercial and industrial sectors to provide maximum liquidity, put assets to their highest and best use and mitigate liabilities. The firm conducts more than $100 billion worth of dispositions and appraisals annually and provides both short- and long-term capital to clients undergoing transformation. Gordon Brothers lends against and invests in brands, real estate, inventory, receivables, machinery, equipment and other assets, both together and individually, to provide clients liquidity solutions beyond its market-leading disposition and appraisal services. The firm is headquartered in Boston, with over 30 offices across five continents.
About Soft Surroundings
Headquartered in St. Louis, Mo., Soft Surroundings is a thoughtfully curated retailer of women’s apparel, home, shoe and accessories merchandise. Releasing its first catalog in 1999, Soft Surroundings has since been dedicated to empowering women to look and feel their best. Soft Surroundings meets the needs of its many devoted customers through its e-commerce channel, SoftSurroundings.com (http://softsurroundings.com/).
About Coldwater Creek
Founded in Sandpoint, Idaho in 1984, Coldwater Creek (www.coldwatercreek.com) is a lifestyle brand and ecommerce retailer of women’s apparel, shoes and accessories. Inspired by the splendor of the great Northwest, Coldwater Creek’s unique fashion aesthetic embraces the simplicity, artistry and beauty of nature. Headquartered in Fort Lauderdale, Fla., Coldwater Creek is committed to creating meaningful customer relationships, a seamless shopping experience and trusted style advice.