Ronco

Division: Phoenix Management Services


Client

Ronco Products, Inc. is a direct mail company developed by Ron Popeil, one of the pioneers in the direct response industry.

Problem

After the sale of Ronco to an equity fund that was funded in large part by a hedge fund the Company experienced significant deterioration of its operating performance. As a result, the Company entered into bankruptcy to seek a sale of the Company’s assets with a specific Buyer identified, which was a new equity fund.

Solution

Phoenix was hired by the capital hedge fund that was the Company’s senior lender to perform due diligence in its efforts to determine the best plan for monetizing its interest in the Company. Phoenix worked with the lender to develop a plan to fund a new equity group that had expertise in direct response. Phoenix assisted with the evaluation of the Company’s management team, product line-up and prospects with new ownership. This work assisted with a successful continuation of this brand.