Winter Harbor LLC

General Foam Plastics

Molding Company Liquidates Assets

 

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.

Our Role

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.

Engagement Outcome

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.