Orderly Wind Down of Steel Service Center After Steel Prices Drop

Stainless Sales Corporation

Addison, Illinois


$80 million Revenue. $12 million debt. 3rd generation , ISO/TS-registered, woman-owned business steel service center.

  • The Company sustained a substantial loss in its Inventory value when stainless steel prices dropped sharply which materially impacted its profitability and the borrowing base for its line of credit, causing the company to be in loan default and over-advanced on its collateral.
  • The Company had several large volume, thin margin industrial customers (whose industries were also experiencing stress) whose supply contracts became unprofitable to the Company when the market plunged.


  • MorrisAnderson was engaged to work with management and downsize/integrate two processing facilities into one facility and also review operations and other areas, including management realignment and customer rationalization/pricing, for potential revenue increases and cost savings to regain company profitability.
  • MorrisAnderson led an aggressive realignment and was able to successfully manage cash for 9 months, eliminate the loan over-advance, and attempt to engineer an option for a successful return to profitability.


  • Given continued weakness in steel pricing and continued decline in sales, an orderly liquidation became the only practice option.
  • MorrisAnderson was able to successfully assist with the Company’s liquidation process and fully pay off the Senior Lender and provide additional recovery to the Unsecured Creditors.

Howard R. Korenthal

Howard R. Korenthal is a Principal and Chief Operating Officer at MorrisAnderson. He has over 30 years of experience working with financially distressed and underperforming companies, serving in senior management, interim management and consulting roles. Howard began his career with the Big Eight accounting firm of Coopers & Lybrand in Chicago where, as an audit Read More

Kyle Putzstuck

Kyle Putzstuck, CPA, is a Director at MorrisAnderson. Kyle brings an extensive background in the accounting and private equity industry and uses that background as basis to structure practical solutions through comprehensive financial analysis. Prior to joining Morris Anderson, Kyle held positions as the assistant controller for Z Capital Partners, a leading global alternative investment Read More