Men’s Clothing Manufacturer

Phoenix serves as financial advisor to a manufacturer of men’s clothing and successfully sells the company to a strategic buyer.

The Client

Our client was a $70 million manufacturer of tailored men’s clothing and pants under the Bill Blass and other private labels for major department stores and specialty shops, headquartered in Philadelphia.

The Challenge

This 98-year old Company was slow to migrate production offshore and, as a result, had difficulty being cost competitive. Changes to its licensing agreement with Bill Blass had also reduced margin, and the Company was struggling with the continued consolidation of its retail customer base, its continued focus on reducing costs, and a major loss resulting from the bankruptcy of one its largest customers. The Company’s shareholder had recently pledged $8 million of marketable securities to support additional borrowings to fund these losses.

The Solution

Phoenix was initially engaged to assist the Company in exploring its strategic options. Phoenix quickly concluded that a sale of the Company was in the best interest of the shareholder. Phoenix developed a plan that maintained the fall business, thereby maximizing the value of the Company’s finished goods inventory, and downsized the Company. Phoenix also assumed control of the Company’s cash management and introduced a renewed focus on collecting receivables, while minimizing disbursements. Phoenix was able to maintain the support of the Company’s secured lender, and spearheaded the negotiations and due diligence process with potential buyers, eventually selling the business to a major industry player. The secured creditor was paid in full, the company avoided bankruptcy, and the vast majority of the guarantor’s collateral was returned, dramatically exceeding everyone’s expectations.

Phoenix Investment Banking

Primary Industry

  • Manufacturing

Secondary Industry

  • Apparel

    Primary Services

  • Business / Operational AssessmentsFinancial ForecastingLiquidation / Business Wind Down