Company Restarted after Flood with New Loan

Child Craft Industries

New Salisbury, Indiana

Challenge

Manufacturer of infant, youth and children’s hardwood furniture. $25 million annual sales revenue. $10 million debt.


  • “Normalized” business operations came to an immediate halt following the “100 Year Floods” in the Ohio Valley.
  • Flood damage forced manufacturing operations to shut down for over 4 months.
  • Company could not ship customer orders and, as a result, lost many long term customers.
  • Insufficient working capital to support flood damage repair and manufacturing re-start expenses.

Solution

  • MorrisAnderson retained to perform a business validation assessment for the company and the secured lender.
  • Found $1.5 million to $2.5 million bridge loan to fund flood damage repairs and expand working capital to re-start the business and release component parts containers being held at the port-of-entry for release of payment.
  • Secured SBA Disaster Relief Agency funding to bridge the business re-start and re-establish lender support and forbearance during this period.

Results

  • Company secured long term, low interest SBA funding and successfully re-started the business.
  • Following the re-start the company was sold to an investor group and personal loan guarantees were released.