Winter Harbor LLC
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RUUM American Kid's Wear

 

RUUM American Kid’s Wear was a retailer offering child, toddler, and infant clothing. The Company consisted of 25 retail stores, three boutiques, and an online catalog. At its height, RUUM clothing was the preferred brand to several celebrities including Katie Holmes, Victoria Beckham, Sean Combs, and Sarah Jessica Parker.

Situation

RUUM’s secured lender appointed Winter Harbor as financial advisor to develop strategic options for either the refinancing, sale, or wind down of operations.

Scope of Work

  • Analyzed Company’s wind-down cash flow to assess achievability and additional cost cutting opportunities to maximize cash generation from a wind-down.

  • Provided an independent forecast to assist the lender in negotiations with the Company.

  • Performed a review of and identified other assets to help increase recoveries for the secured lender.

  • Provided other ad hoc financial information to the lender with included sales, inventory, and other asset information.

  • Presented strategic advice to the lender in negotiating a credit facility amendment including cash flow projections and covenants, collateral, and other considerations.

Engagement Outcome

Winter Harbor oversaw the eventual wind down and sale of RUUM to a strategic buyer which was completed through an asset purchase agreement.