Wind Down of An Apparel Wholesaler


Annual Sales


in Debt

Sustainable Apparel Group, Kansas City Missouri


Apparel Distributor. $20 million revenue. $6 million of debt.

  • Branded apparel wholesaler and retailer defaulted on loan covenants.
  • Inventory was stored at two separate third-party warehouses located across country.
  • The field exam revealed fraudulent reporting of collateral values on the borrowing base.
  • Lender terminated the credit facility, the company abruptly shut down its wholesale business and terminated all employees.


  • MorrisAnderson was appointed Receiver to identify and sell assets to apply against the bank debt.
  • Initiated communications with the wholesale customers, identified un-billed shipments and generated new invoices, and assessed value of the e-commerce business.
  • Determined incremental value in operating the e-commerce retail business while seeking buyers for the inventory, the retail business, and the intellectual property.


  • Located and organized the records, obtained access to the Inventory and negotiated agreements with the warehouses.
  • Obtained staff to administer the business wind-down, secured and stored the accounting books and records, archived electronic data and emails, notified stakeholders of the receivership proceedings and facilitated the claims process.
  • Closed on sale transactions for inventory and business, the net recovery for the secured lender achieved expectations of the initial budget.