Company Restarted after Flood with New Loan
25M
Annual Sales
10M
in Debt
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.