Interim Management Bridges Company to 363 Sale

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 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 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 start of bankruptcy
  • Managed Company through impact of two hurricanes, including Hurricane Maria which had a devastating impact on Puerto Rico
  • Maintained employment for majority of production workers in Puerto Rico