General Foam Plastics was a plastic injection and molding company specializing in artificial Christmas trees, wreaths and garlands, in addition to Easter, Halloween, and Christmas blow-molded decorations and swimming pool items. At its height, General Foam employed more than 1,000 people across its four manufacturing facilities, and earned more than $150 million in annual revenue. It products were sold by third-party retailers and through online, e-commerce sources such as eBay.
As part of the liquidation and wind down process, our professionals:
Performed onsite due diligence and plant inspection.
Analyzed and reviewed historical financials statements and other pertinent financial information related to potential acquisition.
Assessed cash flow viability and future impacts to cash flow.
Reviewed value of assets and assisted in assigning market value prices.
Created three statement models and budget forecasts for future fiscal years.
Aided prospective acquirer in deal specifics related to asset valuation and purchase price.
Assisted with negotiations between prospective buyer and company management.
With Winter Harbor serving as Financial Advisor to General Foam, the Company and prospective acquirer signed a letter of intent. After further discussions, the Company passed on the offer and summarily began to liquidate its assets, closing down operations following the most recent Christmas and holiday season.