When a borrower goes into Chapter 7, it’s natural to focus on the endgame: liquidation. After all, operational concerns come to the fore only in cases involving reorganization, right? Not necessarily. Consider our largelot sale of the majority of former assets from one of North America’s biggest auto parts suppliers — Fenco (Fenwick Automotive Products Ltd., and Introcan).
A major supplier to the likes of AutoZone, […]
The rapidly changing retail food sector shows no signs of slowing down. But while the overall growth in this space is noteworthy, it is arguably more interesting to consider where this growth is occurring: Mass merchants such as Walmart, Target, Costco and even dollar stores and drugstores continue to seize market share from traditional food retailers. Meanwhile, the foodie and healthy-living trends have been driving […]
Judging liquidation firms based on their experience with particular asset types has a certain logical consistency. For instance, if your goal is to qualify yourself to a major meatpacking company, the thinking goes, you should seek a firm with years of experience in liquidating meatpacking assets. Upon closer examination, however, this logic breaks down. Today’s marketplace demands not merely depth of experience in certain sectors, […]
The notion that food is a safe-harbor business in rocky economic times is as old as the phrase “People have to eat.” And safer harbors, of course, tend to attract lots of ships, which is why food can be found nearly everywhere today. Perishable and non-perishable groceries, for example, are routinely available in the drug and dollar stores that are blanketing the country. This trend […]
Appraisal firms are often asked by lenders if condensing a retail chain’s store base early on, or even prior to, the beginning of a liquidation sale will enhance the overall net recovery value (NOLV) of the inventory. Early closures present unique expense savings opportunities to liquidators since bankruptcy court protections can allow for the exiting of locations prior to actual lease termination dates. On paper, […]
