Team Express Distributing, LLC (the “Company”) is a San Antonio, TX-based multi-channel retailer of sporting goods equipment and team sports apparel. After a flawed ERP system implementation in 2015, the Company experienced extreme difficulty fulfilling customer orders and performing basic operations in an accurate and timely matter. As a result, the Company lost millions of dollars in revenues and profits and suffered a material loss of brand value from poor customer service. Due to this operational disruption, the Company’s liquidity was severely strained, resulting in non-payment to trade vendors and, consequently, a reduction in terms offered by major vendors. As a result, the Company filed for chapter 11 bankruptcy on December 16, 2015 to restructure its balance sheet.
- Liquidity Assessment and Cash Flow Analysis
- Operational Performance Review and Monitoring
- Negotiations with secured lenders and potential bidders
Bridgepoint Advises Unsecured Creditors During Bankruptcy
Following the Company’s bankruptcy filing, Bridgepoint Consulting’s Turnaround and Dispute Resolution practice was retained to be the Financial Advisor to the Official Committee of Unsecured Creditors (“UCC”). Bridgepoint assessed the Company’s liquidity position and analyzed its cash flow forecast, to ensure a bankruptcy case could be run to completion in light of pressure from the Company’s secured lenders to liquidate. The firm also monitored operational performance and working capital changes throughout the case. Once the Company decided to pursue a sale of its assets, Bridgepoint, along with counsel to the UCC, negotiated with potential bidders to ensure value maximization to the unsecured creditors. In May 2016, the Company closed the sale of substantially all of its assets with plans to continue operations.
- Creditors limiting terms or cutting Company off from credit
- Company in default of its secured loan and still recovering from failed ERP implementation
- Company sold to new owner
- Creditors receive value in excess of liquidation value, while having on-going business partner
- Creditors stake in lawsuit over failed ERP implementation, which could result in full unsecured creditor recovery