MorrisAnderson Interim Management Bridges Company to 363 Sale
40M
Annual Sales
9M
In Debt
Short Bark Industries, Vonore Tennessee
Challenge
$40 million cut and sew garment manufacturer primarily focused on military clothing. $9 million debt.
- Stabilize operations as the CRO of a Company experiencing a power struggle between secured lender, equity owner, and management; Company previously had a different CRO, a Receiver, and two CEO’s prior to MorrisAnderson (MA) being appointed CRO
- Restart a difficult sales process to accomplish a going concern sale of the Company’s assets
- Manage an unplanned bankruptcy
- Guide Company through the impact of Hurricane Maria, which occurred in the middle of the sales process; the hurricane caused widespread damage to Puerto Rico and created numerous operational difficulties to the Company’s only manufacturing facility in Puerto Rico including lack of power, a scattered workforce, and an inability to ship goods to or from the facility
Solution
- Effectively assert control over operations and ensure consistent communication with employees, suppliers, and creditors occurred
- Push through a sales process to auction and closing despite the impact of Hurricane Maria
- Manage disaster recovery response to ultimately restart Puerto Rican operations after a month shutdown and then close the sale transaction
Results
- Sold substantially all assets in less than 4 months after the start of bankruptcy
- Managed Company through the impact of two hurricanes, including Hurricane Maria which had a devastating impact on Puerto Rico
- Maintained employment for the majority of production workers in Puerto Rico