Toy Manufacturer Strapped for Cash

KGI Helps Find Rescue Capital

Engulfed in Flames
Our client, a 40+ year old toy manufacturer that had declined from a peak of $30 million in sales, was facing a critical situation with its very survival at stake. Economic conditions, costly litigation and some poor decisions had combined to bring the company to the brink of collapse.

Led by Matthew Getty, the KGI team moved quickly to:

  • Secure emergency funding to meet immediate needs such as payroll, averting disaster
  • Obtain temporary forbearance from a hostile lender to buy time to complete a deal
  • Close a strategic sale of the Company to an industry buyer in 45 days from start-to-finish/li>

When KGI arrived at the scene, there was no cash in the bank to meet payroll that was due the next day for several hundred employees.

The lender had lost confidence in the business viability so they reduced its line of credit. KGI was hired to find and secure rescue capital within a few weeks.

Great Results Against All Odds
Against the odds, KGI's quick action helped to save the company from liquidation by obtaining almost $8.0 million in rescue capital, which was sourced from a strategic acquirer in Asia.

In the end, the results included:

  • Preserving a meaningful equity stake for the owners
  • Maintaining distributor and supplier relationships
  • Protecting the going concern value of the business
  • Saving hundreds of jobs
  • Creating a path for future growth

Whether a Company is struggling financially or on the cusp of breakthrough growth, KGI can help. Our seasoned experts work alongside management to solve complex cash flow issues, operational challenges and other business crises. If liquidity or sale is needed, KGI provides a powerful combination of services and expertise to achieve outcomes that cannot be duplicated by other standalone consulting firms.