The Company is a wholesaler and distributor of lumber and panel products to customers located throughout North America, with revenues of approximately $60 million.

The Company was experiencing declining revenues and incurring significant operating losses, due to the collapse of the U.S. housing industry,

Revenues dropped from $140 million to $60 million in 3 years.

Fort Dearborn was engaged to review the Company’s operations and financial forecast and develop a plan to reduce their inventory levels.

Fort Dearborn analyzed inventory and determined that more than half of the inventory had significant value impairment due to age and outside storage.

The Company was unable to restore profitability and operate within the parameters of its credit facility, due to declining revenues, historically low lumber prices and a significant amount of impaired inventory,

Fort Dearborn recommended the sale of the Company since there was inadequate capital available to carry out an operating plan.

Fort Dearborn identified a buyer and acted as the Company’s financial advisor for this transaction, assisting the owner in negotiating the terms of the asset purchase agreement.

The lender was able to sell the assets of the Company pursuant to Section 9 of the IL Uniform Commercial Code.

Fort Dearborn was able to secure additional bidders for the public auction, which ultimately resulted in an increase of the original purchase price.

Identified buyer and closed transaction within 90 days of the start of our engagement.

Navigated the Company through significant liquidity issues so that the sales process could be consummated.