Triad Turnaround Group aims to help struggling stores
By Larry Thomas -- Furniture Today, January 4, 2009
HIGH POINT — Hoping to stem the tide of bankruptcies and going-out-of-business sales that have plagued the furniture industry, the head of a liquidation firm here has founded a consulting firm aimed at helping retailers remain in business.
Called the Triad Turnaround Group, the new firm says its goal is to help retailers restructure their businesses while avoiding bankruptcy proceedings.
“Typically, when a retailer gets into financial trouble, they have nowhere to go,” said Ed Borowsky, founder of the new firm. “Bankruptcy is often their only alternative.”
Borowsky, who also runs liquidator The High Point Group, said his new firm will pore over a troubled retailer's finances and operations and create a custom workout plan that keeps the company out of bankruptcy court.
He said he believes such plans would also benefit vendors because they would see a much greater portion of their debt paid off.
Once a workout plan is developed, vendors would have to agree to forego their current debt and continue to ship products to the retailer. The retailer would then pledge a portion of net sales and net profits to pay back creditors.
“It's much better to have a retailer who is still buying their products … rather than waiting for a bankruptcy proceeding, where they are likely to get less than 2% of their debt paid,” said Borowsky, noting that many Chapter 11 reorganizations wind up as liquidations.
Depending on the size of the retailer, workout plans could take two to five years to complete, he said. During that time, an advisory board would oversee the retailer's operations, and specialists appointed by the firm would provide hands-on operational support, Borowsky said.
More information is available online at www.triadturnaround.com.
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