Publisher of Children’s Book

Phoenix serves as financial advisor to a publisher of children’s books and completes the sale of the company within 6 weeks.

The Client

Phoenix’s client was a $45 million New Jersey-based Publisher and Marketer of Children’s Books.

The Challenge

The Company had experienced a rapid and substantial decline in revenues, and was losing market share to its largest competitor, Scholastic, Inc., at an alarming rate. Phoenix quickly determined that at the depressed revenue levels it was not possible to restore the Company to profitable performance. Further, in the absence of a substantial cash infusion, Phoenix also determined that the Company could not continue as a going concern.

The Solution

Phoenix worked closely with the equity sponsors and management and sought a strategic partner to acquire the Company. The company entered into an asset purchase agreement with the acquirer and subsequently filed a Chapter 11 petition for the specific purpose of concluding the sale in accordance with Section 363 of the U.S. Bankruptcy Code. The sale was confirmed and completed in an expedited manner within 6 weeks of the initial Chapter 11 filing.

Phoenix Investment Banking

Primary Industry

  • Manufacturing

Secondary Industry

  • Publishing

    Primary Services

  • Bankruptcy Advisory