Winter Harbor LLC
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Cache

 

Cache was a retailer of women’s high-end fashion clothing and accessories found in shopping malls and plaza centers throughout the United States with $200 million in annual revenue. Cache sold dresses, sportswear, and accessories through its retail network of 220 stores. They were a publicly traded company on the Nasdaq exchange.

Situation

Due to the surge of online shopping, brick-and-mortar stores quickly faced declining sales and a surplus of inventory level. Similar to several national apparel brands, Cache was struggling to keep its many retail locations open. Cache hadn’t reported a profit in the previous nine quarters, and required assistance with securing a stalking horse bidder for its assets, as it wound down operations.

Scope of Work

Winter Harbor was appointed as restructuring advisor by Cache’s senior lender, working as a liaison between them and the chief restructuring officer.

  • Assisted the senior lender during the bankruptcy process to analyze the Company’s performance compared to their negotiated DIP budget.

  • Participated in calls with the senior lender and the Company’s chief restructuring officer.

  • Highlighted and communicated potential issues to the senior lender regarding the Company’s performance to the DIP budget, and addressed all complications directly with the chief restructuring officer.

  • Created weekly dashboards for the senior lender to identify specific areas of concern.

  • Assessed the monetization of assets prior to liquidation.

Engagement Outcome

Prior to closure, Cache was focused on upgrading its profitable retail stores, and close unprofitable locations. They were unable to keep up with rapidly changing consumer tastes and the continued growth of e-commerce and shopping online. Winter Harbor assisted the chief restructuring officer with securing a stalking horse bidder for the purchase of Caches assets as it proceeded through liquidation.  We oversaw the wind down and going-out-of-business sale process of Cache, including the removal of Cache shares for the Nasdaq exchange. All Cache stores have been closed.