Private Health & Beauty Products Retail Chain

Phoenix serves as interim CEO for a privately-held health & beauty products retailer and leads the Company through a liquidating Chapter 11 process.

The Client

The Company was a $20 million privately held national Health and Beauty Products Retail Chain and provider of durable medical equipment with operations in the Detroit, Pittsburgh, and Philadelphia markets.

The Challenge

The equity investors were concerned about the direction and viability of this business. Additionally, the lenders were fearful that repayment of outstanding loans was in jeopardy.

The Solution

Phoenix was retained to assess the situation and to advise the investors on strategic alternatives. Phoenix concluded that the client had not reached a critical mass in terms of establishing a sufficient number of institutional relationships to support its warehouse operations. Further, the significant ongoing cash drain was too high a hurdle to overcome to justify further equity investments. Phoenix was installed as interim CEO and led the Company through a liquidating Chapter 11 process, which maintained the durable medical equipment business until it could be sold. Phoenix structured, negotiated, and closed the sale of assets in more than a dozen transactions under Section 363 of the Bankruptcy Code.

Phoenix Turnaround

Primary Industry

  • Retail Trade

Secondary Industry

  • Medical Products

    Primary Services

  • Crisis ManagementInterim ManagementStrategic AdvisoryBankruptcy AdvisoryLiquidation / Business Wind Down