Restructuring Advisors

Willcox & Gibbs, Inc.

Company: Willcox & Gibbs, Inc. and four (4) subsidiaries
Industry: Textile Distribution / Service
Region: Northeast, Southeast and West Coast and Great Britain
Revenue: $80 million
Services: CRO – Chapter 11, Recovery and Sale of Company Assets

The Challenge:

Willcox & Gibbs was a leading distributor of supplies and equipment to the garment and sewn products companies within the textile industry. The company was the second oldest sewing machine company in the United States, with 146 years of corporate history. The organization had five U.S. based companies and one European division. Common among all was the struggle to be price competitive in a market that had seen the vast majority of industry players move off-shore. The company was highly leveraged after completing several unsuccessful acquisitions. Management had a “hands -off” style in a business that required significant attention to detail.

Our Actions:

Jim Burritt, managing partner at Restructuring Advisors provided the secured lending group with a recovery valuation analysis that outlined cash receipt expectations and a project operating budget and time-line. A Chapter 11 bankruptcy was filed in the Delaware Court. Outlying facilities and the equipment they housed were secured. Inventories were verified and consolidated in three locations. Under the bankruptcy filing leases were rejected on facilities no longer required.

Mr. Burritt identified prospective buyers for the trade names, patents, customer lists and other intangible and intellectual property, as well as the distribution handling equipment and remaining inventory. Efforts were focused on strategic buyers interested in expanding and strengthening their branding and distribution capabilities.

The Results:

All business lines and associated inventories were s old and closed in a series of five transactions that were completed in approximately 6 months. The financial targets originally established by the lenders were exceeded with the final result being 121% of their objective.