We were engaged as the Chief Restructuring Officer to Right Start / Babystyle, a specialty children’s clothing and educational goods retailer with over $50 million in annual sales.
Broadway Advisors, in just three weeks after filing, determined that the current equity holders did not have the liquidity or desire to fund a turnaround. Therefore, in order to preserve the value of the estate, we immediately embarked on a plan to liquidate the company’s inventory at over 50 locations in 13 states while simultaneously marketing select stores and the company’s intellectual property.
Our experience and quick action enabled us to develop a comprehensive marketing program that generated significant interest from both financial and strategic buyers.
As a result of our marketing efforts, the auction had numerous participants and resulted in a final purchase price 80% higher than the stalking horse bid. We achieved a full recovery to the secured lenders and priority unsecured creditors through a confirmed Plan of Liquidation within 90 days of filing.