Case Histories 

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Retailing Case Histories 
Abacus professionals have been active participants in virtually every major retail chapter 11 and out-of-court restructuring over the past 20 years, whether large nationwide chains (Filene’s Basement, Kmart, Montgomery Ward) or specialty or smaller businesses (Friedman’s Jewelers, Casual Male, Manolo Blahnik).  Working with management, lenders and unsecured creditors, we have developed a deep understanding of the difficult and complex issues confronted in the retail industry and the value of retail assets.  Among the services we provide are:
  • Interim management of select operations and entire businesses;
  • Operational reviews of personnel, organization and systems;
  • Assistance with the formulation of a focused business plan;
  • Evaluations of inventory, receivables, real estate and other assets;
  • Assistance with the disposition of surplus and under-performing assets

To review case histories, simply click on company names in right column.

 

 

 

 

 

 

 

 

 

 

 

Allied/Federated Department Stores Provided assessment of ongoing business viability and asset recovery value for inventory in 257 locations from the company’s nine separate department store chains.  Valuation model for inventory led to a recommendation on lending formulas used to develop credit underwriting standards by a group of lenders.

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Amazing Savings Stores, Inc., Provided strategic advice to this large off-price regional retailer regarding operations and financial issues, including the development of financial forecasts and a review of the company’s real estate, merchandising, advertising, and allocation processes.

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Ames Department Stores Provided assessment of ongoing business viability of this regional discount department store chain with more than 700 locations.  Established an asset valuation model used to develop credit underwriting standards.

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Barry’s Jewelers, Inc. Established asset valuation model for over $250 million in retail inventory at the nation’s fourth-largest independent retailer of fine jewelry, with 159 stores in 13 states.

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Best Products, Inc. Working with joint venture partners, purchased all of the company’s assets, including real property leases and $750 million of inventory in 199 retail locations. The transaction proceeds funded the company’s chapter 11 plan and provided a limitation on lease claims, enhancing distributions to creditors.

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Bonus Stores, Inc. Supervised and directed physical inventory in connection with the sale of substantially all of the assets of this 336-store discount chain on behalf of the company and its unsecured creditors.

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Bonwit Teller Conducted going-out-of-business sale for chain of 16 apparel stores located in four states.

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Bradlees, Inc. Advised debtor in final business wind-down, liquidation program and claims reconciliation; negotiated disposition of $400 million of retail inventory, $150 million of real estate, and $5 million of fixtures and equipment.

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Broadway Stores Provided an asset recovery value for over $730 million in inventory, and ultimately conducted going-out-of-business sales at 82 retail locations in five states.

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Carter Hawley Hale Stores, Inc. Provided an assessment of ongoing business viability and an asset recovery value of inventory in this company’s four full-line department store chains to establish a borrowing base and loan formula for both retail inventory and consumer receivables.

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Casual Male Corporation Assisted company in all aspects of a chapter 11 reorganization, including assessment of business operations and development of strategic alternatives; advised Special Committee of board formed to evaluate alternatives; worked with company and prospective purchasers to consummate sale of business as a going concern.

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Childworld, Inc. Established asset valuation model for retail inventory for this national toy retailer; advised creditors regarding possible restructuring plan; conducted traditional going-out-of-business sale of all store inventories, fixed assets and real estate leases.

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County Seat Stores, Inc. Appointed chapter 11 trustee to manage company and conduct an orderly wind-down of business, including disposition of certain operating divisions, inventory, real estate and fixed assets. Pursued fraud claims against former management in order to pay administrative, priority and general unsecured creditors.

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Dart Drugstores, Inc. Advised bondholders’ committee regarding all aspects of chapter 11 case involving this drug store chain, including disposition of inventory and real estate.

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Edison Brothers, Inc. Established asset valuation model for over $1.4 billion in retail inventory that led to a recommendation on lending formulas used to develop credit underwriting standards.

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Emporium, Inc. Provided an asset recovery value for $90 million in retail inventory for this Pacific Northwest department store chain that led to the development of credit underwriting standards.

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Filene's Basement, Inc. Engaged as the Chief Restructuring Officer of this iconic retailer in connection with its enormously successful chapter 11 case, which resulted in full payment to secured, administrative, and priority creditors; a 75% recovery by unsecured creditors; and continued employment for virtually all of the company’s workforce.

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Footstar, Inc. Acted as financial advisor to one of the nation’s largest footwear retailers in its chapter 11 restructuring and reorganization, including advising on the sale of its athletic shoe division to Foot Locker for $225 million and the disposition of the company’s owned and leased real estate.

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Frank's Nursery & Crafts, Inc. Acted as interim senior management during the company’s chapter 11 case and provided an operational team for merchandising, finance, store operations, information technology, and logistics functions. At the time, Frank’s was the nation’s largest lawn and garden specialty retailer, operating 169 stores in 14 states.

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Friedman's Inc. Served as court-appointed trustee of the creditors’ trust established under the confirmed chapter 11 plan of this troubled jewelry retailer to pursue avoidance, fraud and restitution actions on behalf of the company’s unsecured creditors.

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Frost Brothers, Inc. Advised seller in connection with the successful resolution of litigation challenging the $100 million sale of this Texas-based retail chain as a fraudulent conveyance.

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G+G Retail Inc. Advised Creditors’ Committee in connection with the $45 million sale of substantially all assets of this women’s apparel and pre-teen retailer that operated more than 550 stores under the Rave, Rave Girl and G+G names.

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Gibson’s Discount Centers, Inc. Established an asset valuation for over $50 million in retail inventory for discount department store chain, leading to a recommendation on a lending formula.

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Hechinger Company Provided inventory recovery value for this regional home improvement center retailer with 118 locations; evaluated wind-down plan for Creditors’ Committee and provided “stalking horse” alternative in auction process.

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Henry Silverman’s Jewelers, Inc. Established an asset valuation model for over $51 million in retail inventory for this regional jewelry chain that led to a recommendation on a lending formula used to develop underwriting standards.

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KB Toys, Inc. Appointed trustee of the KBTI Residual Trust to investigate and pursue certain causes of action, and collect, administer, and distribute assets to unsecured creditors in the first chapter 11 case of one of the nation’s largest mall-based retailers.

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Kmart Corporation Advised company with respect to the disposition of $1.5 billion of non-core inventory and real estate assets, provided valuation model for over $10 billion in retail inventory to company and lenders, and negotiated with landlords on behalf of company for lease concessions.

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Lechters, Inc. Engaged by this housewares retailer to solicit and evaluate proposals for the sale of assets; conducted auction of $110 million retail inventory.

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Mondi of America, Inc. Advised the company with respect to the value of its inventory, provided a minimum guarantee for the inventory, and conducted an auction that resulted in full payment of secured, priority, and administrative claims, and a dividend to unsecured creditors.

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Montgomery Ward Advised company regarding all aspects of its final wind-down program, including the disposition of retail inventory of $1.8 billion, real estate valued at over $400 million, and furniture, fixtures and equipment in excess of $20 million.

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Morse Shoe, Inc. Represented this large national footwear retailer in all aspects of the chapter 11 process, including DIP financing, creditor negotiations, and the sale of company.

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Musicland Holding Corp. Provided consulting and advisory services to this leading retailer of music, movies and entertainment-related products under the “Sam Goody” and “Suncoast” names in connection with the company's chapter 11 case and the disposition of non-core assets. Role included negotiating with a variety of interested parties to sell over $140 million of inventory, and, on behalf of the company, conducting a Bankruptcy Court sanctioned auction for certain assets.

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Norstan, Inc. Conducted extensive marketing effort on behalf of this 230-store retailer operating under the “Fashion Cents” name that resulted in the sale of substantially all of the company’s inventory, real estate and intangible assets, as well as the continuation of employment for most of its workers.

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Oshman Sporting Goods Analyzed company’s business plan and store projections; established asset valuation model and liquidation value for inventory that led to a recommendation on lending formulas.

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The Penn Traffic Company Provided advisory and consulting services to the Official Creditors’ Committee in connection with the sale of substantially all of this regional supermarket company’s assets for $85 million in its most recent chapter 11 case. In an earlier chapter 11 filing, provided a full range of advisory services to Penn Traffic’s DIP lender group, including an evaluation of the company’s business, operations, assets, and financial condition
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R.H. Macy, Inc. Reviewed company’s business plan for feasibility and viability; valued inventory in order to establish a lending formula.

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Service Merchandise Corporation Acted as wind-down advisors to 250-store catalog showroom chain in connection with the disposition of inventory and real property valued at over $1 billion.

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The Sharper Image Provided an asset recovery value of inventory for this specialty retailer operating over 80 locations in 28 states; inventory valuation led to lending formulas used to develop credit underwriting standards.

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Sportmart, Inc. Established an asset valuation model for over $250 million in retail inventory that led to a recommendation on lending formulas used to develop credit underwriting standards.

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Steve & Barry's Worked with the company’s management and secured lenders to evaluate the business plan and cash flow needs of this 276-store family apparel chain, including an assessment of purchasing practices, inventory levels, budgeting process, and staffing levels.

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Strauss Auto Assisted management with the development and implementation of a successful restructuring program for this retail auto parts and service center chain and the disposition of non-productive assets.

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United Merchandising Corp. Established asset valuation model for over $325 million in retail inventory for this operator of 192 sporting goods stores that led to a recommendation on lending formulas.

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Wherehouse Entertainment, Inc. Established asset valuation model for over $140 million of inventory for this 346-store music and video retailer that led to a recommendation on lending formulas used to develop credit underwriting standards.

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Zale Corporation Represented principal consigner to the nation’s then-largest independent jewelry retailer, and obtained payment in full of consignor’s secured and unsecured claims; provided inventory valuation for DIP loan facility.


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Allied/Federated Department Stores
Amazing Savings Stores, Inc.
Ames Department Stores
Barry’s Jewelers, Inc.
Best Products, Inc.
Bonus Stores, Inc.
Bonwit Teller
Bradlees, Inc.
Broadway Stores
Carter Hawley Hale Stores, Inc.
Casual Male Corporation
Childworld, Inc.
County Seat Stores, Inc.
Dart Drugstores, Inc.
Edison Brothers, Inc.
Emporium, Inc.
Filene's Basement, Inc.
Footstar, Inc.
Frank's Nursery & Crafts, Inc.
Friedman's Inc.
Frost Brothers, Inc.
G+G Retail Inc.
Gibson’s Discount Centers, Inc.
Hechinger Company
Henry Silverman’s Jewelers, Inc.
KB Toys, Inc.
Kmart Corporation
Lechters, Inc.
Mondi of America, Inc.
Montgomery Ward
Morse Shoe, Inc.
Musicland Holding Corp.
Norstan, Inc.
Oshman Sporting Goods
The Penn Traffic Company
R.H. Macy, Inc.
Service Merchandise Corporation
The Sharper Image
Sportmart, Inc.
Steve & Barry's
Strauss Auto
United Merchandising Corp.
Wherehouse Entertainment, Inc.
Zale Corporation