Distributor of Personal Care Products

Phoenix serves as financial advisor and liquidates substantially all of the assets of a personal care products distributor for the benefit of its creditors.

The Client

Company was a $21 million Distributor of Personal Care Products to large low-cost outlets and through direct mass-marketing programs.

The Challenge

The company went public through an IPO that primarily benefited its investment banking firm. A combination of events including the prohibitive costs for required SEC filings, loss of two major customers and an SEC compliance issue caused the Company to be unable to service its debt.

The Solution

Phoenix Management Services was retained by the Company’s secured lender to assist management with the conversion of the bank’s collateral to a cash position. Phoenix moved quickly to downsize the operations and focus primary attention and resources to collect all outstanding receivables and sell off inventories to selected large low cost outlets. Phoenix identified component products in inventory that could be transferred to a contract packager for assembly and ultimate sale and conversion to cash. Phoenix then arranged for the transfer of all remaining inventories to a liquidator with specialization in the personal care products industry.

Phoenix Turnaround

Primary Industry

  • Distribution

Secondary Industry

  • Personal Care Products

    Primary Services

  • Business / Operational AssessmentsLiquidation / Business Wind Down