distributor/importer of licensed children's apparel

$75M Revenue

Company Overview

The Company is a leading supplier of licensed and private label infant and toddler apparel to mass market retailers, mid-tier retailers, and department stores.

Major customers include Target, Wal Mart, OshKosh, Disney Stores, Sears, Dillards, Kohls, K-Mart and Babies-R-Us.

Engagement Overview

The Company had experienced declining sales, gross margin erosion and losses.

FDP was engaged to perform a review of the Company’s operations and business plan.

–Performed a thorough analysis of customer profitability and vendor agreements; and

–Addressed liquidity concerns to ensure that the Company’s capital needs were met by a seasonal over-advance on its revolving line of credit facility.

Working with management, FDP developed profit improvement tactics:

–Improved warehouse operations in order to reduce customer charge-backs;

–Dramatically reduced operating expenses;

–Directed revised pricing and terms with the Company’s international sourcing agent;

–Implemented senior management changes in sales, finance and warehouse management;

–Reduced working capital commitments through aggressive inventory and receivable reductions; and

–Negotiated over $1 million of new credit with the Company’s overseas vendors.

FDP was actively involved in implementing the identified tactics.

Results

By adopting Fort Dearborn’s proposals, management was able to reduce operating expenses by $3 million, product costs from its sourcing agent by over $500,000 and significantly eliminated all controllable customer charge-backs, thereby returning the Company to sustainable profitability.

Successfully sold the Company five years after the initial turnaround engagement.

FDP News

Oct - 22

Alice Chan joins Fort Dearborn Partners

Fort Dearborn Partners is pleased to announce that Alice Chan has joined our firm as a Director.

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Sep - 22

Bears Win Season Opener!

Not even the worst flooding in 2 years could stop the Bears from winning their season opener.

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Jun - 22

Fort Dearborn advises HF Foods Group, Inc. - Sealand Food, Inc.

Fort Dearborn Partners (FDP) is pleased to announce we served as sole financial advisor to HF Foods Group, Inc. (NASDAQ:HFFG) in its transaction with Sealand Food, Inc.

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