MorrisAnderson Orderly Wind Down of Steel Service Center After Steel Prices Drop


Annual Sales


in Debt

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 the 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.