PROJECT SUCCESS STORIES AND CASE STUDIES

Auctions, Sales, Retail/E-Commerce Store Closings, Reverse Logistics, and Inventory Management

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RENEWABLE ENERGY

 

Biomass Energies 

Bumpass, Virginia

Sale Strategy Achieved $2.0 Million Over Expected Auction Value

Situation: Wood pellet manufacturing plant had been shuttered and the assets had to be monetized.

Actions: HYPERAMS was able to find a turnkey buyer to purchase the plant, equipment, and real estate instead of selling the assets at auction.

Results: Sale strategy resulted in proceeds of $2.0 million more than what was expected to be achieved at auction.

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OIL FIELD SERVICES

 

Nine Energies Service

Broussard, Louisiana and

Oklahoma City, Oklahoma

Sealed Bid Methodology Resulted in 100% Increase Over Anticipated Auction Value

Situation: Company was exiting its traditional completion business in Louisiana and Oklahoma.

Actions: HYPERAMS completed a sealed bid sale for the inventory and an on-site and online auction for the rolling stock, machinery, and support equipment.  

Results: HYPERAMS was able to sell all of the inventory and equipment. The use of  a sealed bid methodology for the inventory assets resulted in more than a 100% increase from the anticipated auction value of this  category of assets. The traditional webcast and live auction sale for the remaining assets exceeded projected results. 

FABRICATION

 

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Indiana Limestone Co.

Oolitic and Bloomington, Indiana

Marketing Efforts Attracted Buyers and Helped Sales Exceed Plan

Situation: Private equity portfolio company was exiting its stone fabrication business in order to concentrate on its quarry operations.

Actions: HYPERAMS conducted an online auction of stone cutting, shaping, and crushing equipment.

Results: The online auction attracted stone equipment buyers from 18 states, Canada, and Mexico. The Company was able to successfully exit the stone fabrication business with proceeds in excess of expectations.

BMT Tank

Albuquerque, New Mexico

Assets and Property Sold In Excess of Plan

Situation: BMT Tank was in workout proceedings at a national ABL group and needed to liquidate.

Actions: HYPERAMS conducted a two-day live/webcast auction to sell all fabrication assets and rolling stock.

Results: All equipment was sold at auction at a recovery in excess of projection, and an auction buyer purchased the land and remaining business assets to continue operations under a different name.

MANUFACTURING

 

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MPI Products

Greenville, Tennessee

Sold All Assets and Returned Plant to Conditions Required Under Lease

Situation: Company lost a key contract and decided to shutter one of its plants.

 

Actions: HYPERAMS sold the Company’s best fine blanking press lines pursuant to a presale at significant premiums to the Orderly Liquidation Value, and conducted a live/webcast auction of the remaining plant machinery and equipment. 

Results: HYPERAMS sold all equipment in the plant, as well as oversaw the cleaning and filling of the manufacturing pits, returning the real estate to conditions required under lease.

Steel Parts, MPI, Raybestos, Katun, and Compass Automotive

Indiana, Tennessee, Iowa, Minnesota, and Kentucky

Attention to Detail and Careful Coordination Allowed Sales to Exceed Plan

Situation: Private equity firm wanted to sell excess equipment that was no longer needed in the operations of four portfolio companies in order to reduce debt service.

 

Actions: HYPERAMS traveled to each plant and spent weeks separating, cleaning, and properly recording the specifications of these assets in preparation for several online auctions.

Results: HYPERAMS was able to meet or exceed projected sales plans in all seven separate online auction events.

Serious Energy

Chicago, Illinois

Purchase and Auction Helped Fund New Business Venture for Plant Employees

Situation: Company wanted to shut down its plant but employees wanted to purchase the assets and continue manufacturing operations.

Actions: HYPERAMS partnered with The Working World to purchase the assets of Serious Energy. The Working World then reopened the business in conjunction with the employees in a nearby plant under 

Source: New Era Windows Cooperative

the name New Era Windows. HYPERAMS auctioned off all assets not needed in the new operation.

 

Results: The combined purchase and auction allowed New Era to start its scaled-down operation while maximizing the return on the assets no longer needed for the business.

RETAIL AND E-COMMERCE

 

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Josuda Corp. d/b/a Shade Tree Powersports 

Middlefield, Ohio and Big Lake, Minnesota

Sale Strategy Achieved Superior Results Over Bulk Purchase Offers

Situation: Company peacefully surrendered its assets, which included inventory from two locations and a distribution center, to a secured creditor.

 

Actions: HYPERAMS’ team reopened the store and restarted the webstore, which had both been shut down for three months. After significant success in the Ohio location, HYPERAMS also opened the shuttered Minnesota location that had been closed for over eight months with a significant amount of unsold product.

 

Results: HYPERAMS’ strategy to reopen the physical stores and the e-store resulted in a superior net recovery for the secured lender over any bulk purchase offers it had received.

Fields 

Central and Western Canada

Staggered Store Closing Strategy Reduced Expenses and Increased Recovery Values

Situation: Parent company Hudson’s Bay Co. decided to exit its general merchandise banner Fields. Hudson’s Bay was able to sell a portion of the stores to a going concern buyer, and needed to close the remaining 84 stores. 

Actions: HYPERAMS conducted a store closing sale over a five-month period, staggering the store closing sales by market to provide the most efficient cost recovery while selling through millions of dollars of inventory in the supply chain.

 

Results: HYPERAMS exceeded its projected net recovery value as a percentage of cost by more than 5.0%.

Source: The Maple Creek News

Fox & Obel

Chicago, Illinois

Store Closing Sale Strategy Recovered 40% More in Anticipated Proceeds

Situation: Restaurant equipment retailer filed for Chapter 7 Bankruptcy and shuttered its doors immediately.

 

Actions: After the store had been closed for a week, HYPERAMS reopened the store within two days to conduct a

highly successful three-day store closing sale. After the sale, HYPERAMS set up a live/webcast auction for the equipment.

 

Results: HYPERAMS sold 98% of the inventory during the store closing sale, with the remaining inventory and equipment sold during the auction. HYPERAMS returned the property to the landlord empty and in good condition. The client recovered 40% more in proceeds by holding the three-day store closing event prior to the auction and exceeded expectations in the sale of fixed assets.

Major DIY Retailer

Western Canada

Flexible Clearance Center Model Allowed for the Liquidation of Almost Twice the Amount of Distressed Inventory Initially Planned

Situation: A major DIY retailer (name withheld by Client) engaged HYPERAMS to operate a clearance center in order to maximize the Company’s distressed and obsolete inventory in one of its markets.

 

Actions: HYPERAMS utilized a previously shuttered storefront to consolidate and organize the obsolete inventory from two recently closed stores as well as several ongoing stores and a distribution center.

 

Results: The project exceeded the Company’s expectations, not only in overall sales but in the higher-than-forecasted cost recovery  on the inventory. The flexibility of the model allowed for the liquidation of almost twice the amount of inventory planned.

Santa Fe Mountain Sports

Santa Fe, New Mexico

Successful GOB Sale Allowed Owner to Retire with Cash

Situation: Owner of the Company wanted to retire and close the independent ski and bike shop.

 

Actions: HYPERAMS conducted a GOB Sale of the retail inventory, rental equipment, and store fixtures.

 

Results: The three-month GOB Sale was very successful, resulting in the sale of all inventory, equipment, and assets.

Lord & Taylor Home Stores

Shrewsbury and Paramus, New Jersey

Quick Setup and Careful Management Helped Recovery Values Exceed Projections

Situation: Parent company Hudson’s Bay Co. decided to close its two standalone home stores.

 

Actions: HYPERAMS immediately began preparing for the store closing sale by sending representatives to the stores and organizing the inventory.  Due to these efficiencies, HYPERAMS was prepared for the store closing sale in less than a week.

 

Results: HYPERAMS exceeded its projected net recovery value as a percentage of cost by more than 4.0%.

INVENTORY MANAGEMENT AND REVERSE LOGISTICS

 

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Cobra Electronics

Chicago, Illinois

Non-Saleable RTV Goods Purchased for Cash

Situation: Cobra was acquired by a private equity firm and wanted to monetize its returns inventory, which was not included as available product on its borrowing base.

 

Actions: HYPERAMS and sister company Hyper Micro Systems purchased all RTV goods and turned non-saleable inventory into cash immediately instead of waiting months to ship back overseas in order to have them re-manufactured.

 

Results: The goods were inventoried, paid for with cash, and removed from the company. All product was received, tested, reconditioned and resold at a premium return.

Target Canada

Toronto, Ontario, Canada

RTV Goods Purchase Provided Cash for Store Closures

Results: The goods were inventoried, removed, and shipped to Hyper Micro’s warehouse in Wood Dale, Illinois and an additional third-party warehouse to be sold through a variety of channels.

Situation: Target was exiting the Canadian market and had a massive amount of merchandise scheduled to be returned to vendors.

 

Actions: HYPERAMS and sister company Hyper Micro Systems purchased all RTV goods and provided cash to help fund the store closing.

Source: The Calgary Sun

Archbrook Laguna

Georgia and New Jersey

RTV Purchase Infused Client with Over $1.0 Million of Much Needed Cash

Situation: Distributor of consumer electronics and technology assets was in financial distress and in immediate need of cash.

 

Actions: HYPERAMS and sister company Hyper Micro Systems purchased all RTV goods for which manufacturers would no longer give credit, infusing the Company with over $1.0 million of cash prior to its bankruptcy filing.

Results: The goods were inventoried and removed from the Company’s two locations within a week. All of the products were tested, reconditioned, and resold at a premium return within six months of purchase.

TRUCKING AND ROLLING STOCK

 

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Hartwig Transport

Schiller Park, Illinois

Repairing Assets Paid Off in Auction Sales

Situation: Tractor trucks, box trucks, and truck parts of unknown condition were located in the yard of a shuttered repair facility.

 

Actions: HYPERAMS found that only a few of the 40 vehicles were operable and that a majority of the vehicles would be viewed as scrap by potential buyers. HYPERAMS invested $5,000 to repair salvageable assets.

 

Results: HYPERAMS was able to get 12 more vehicles in working condition prior to the onsite/webcast auction in order to boost auction proceeds.

CONSTRUCTION AND YELLOW IRON

 

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Di Paolo

Glenview, Illinois

Auction Proceeds Were Over Plan and Under Budget

Situation: Construction firm had to be liquidated by a bank pursuant to an FDIC loss share reserve.  Assets were physically located in 13 different locations in two states.

 

Actions: HYPERAMS marshaled equipment from 13 locations to 

three in order to provide a more controlled environment, and retained the company mechanic to repair the main assets to working condition, significantly enhancing values. The auction was conducted at a banquet hall and resulted in over 100 buyers in the room and 75 online from three different countries.

 

Results: Auction proceeds exceeded expectation and expenses came in under budget.

PRINTING AND PROCESSING

 

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Upfront Productions

Minneapolis, Minnesota

Repairing a Key Asset Boosted Auction Sales

Situation: Company filed Chapter 11 Bankruptcy and the Secured Lender wanted to maximize its return.

 

Actions: HYPERAMS invested in repairing a printing press (which was a major Company asset) prior to conducting an online global auction.

 

Results: By repairing the printing press, HYPERAMS was able to exceed auction sales expectations.

Terms and Conditions


1. IDENTIFICATION: All purchasers are required to register and give their full name and address. All perspective international webcast bidders must post a 10% deposit of approximate planned spending budget or minimum of $5,000.00 to be approved. No exceptions will be made. The auctioneer may require a deposit from any bidder prior to approval to bid. 2. Buyer is responsible for any applicable Sales and Use Taxes and will supply the Auctioneer or Seller with documentation and proof that is acceptable to the State in which assets are located as satisfactory to the Auctioneer. Should the State reject such documentation buyer will make the payment of said taxes immediately and agrees to defend Company/Seller from all tax claims. In any case the sales tax liability remains the sole obligation of the purchaser purchases without proof of exemption, sales tax at the applicable rate will be added to the purchase price plus the buyer’s premium and remitted to the Auction Company. 3. A Buyer’s Premium (15% ON SITE,18% ONLINE) of the bid price will be added to the price of each item purchased to arrive at the total purchase price. 4. The Auctioneer reserves the right to group, reduce, add or delete lots. The Auctioneer reserves the right to bid on behalf of the owner. 5. REMOVAL: Buyer is solely responsible to provide any personnel, equipment or material needed to pick up purchases and shall assume all responsibility for the removal of any item purchased at the sale. Buyer is required to remove within the stated time frame which is on the invoice unless prior arrangements have been made in writing and approved by the Auctioneer. All purchases must be removed in their entirety. Items will be considered abandoned, and buyer shall lose all rights to said equipment without recourse or refund due from Auctionneer after the removal deadline. 6. Although information has been obtained from sources deemed reliable, the Auctioneer makes no warranty or guarantee, expressed or implied, as to the accuracy of the information herein contained or the fitness for duty of any of the assets. All assets are being sold “AS IS, WHERE IS, NO EXCEPTIONS”. 7. If for any reason an item shall become non-deliverable, the Auctioneer shall not, in any event, be liable for non-delivery, or for any other matter or thing, to any Buyer of any lot, other than for the return to the Buyer monies paid to the Auctioneer for said lot, should the Buyer be entitled thereto. No adjustments will be made after the assets are removed from the sale site. 8. PAYMENT: Invoices must be paid in full by close of business of the date listed on invoice. A buyer’s premium (15% on site,18% online) will be applied to all invoiced sales and sales tax will apply without appropriate proof of exemption. Business checks will not be accepted without a letter of verification from your bank similar to below: (Your Bank Name) unconditionally guarantees payment to HYPERAMS, LLC from (Your Company Name) up to the amount of __________. This guarantee will be valid for purchases made at the auction of (Auction Name) on (Auction Date). NO ASSETS WILL BE RELEASED UNTIL INVOICE IS FULLY PAID. 9. MANNER OF PAYMENT: All deposits and balances due shall be payable to the order of HYPERAMS, LLC. All payments must be made by Cash, Cashier`s Check, Wire Transfer or Company Check with Bank Letter of Guarantee. The full purchase price on all lots sold to the same buyer must be paid in full by the date listed on invoice and before removal of any of the assets. 10. All assets are being sold “AS IS, WHERE IS” and buyer acknowledges they have inspected all assets prior to bidding. While all care was taken in gathering information on the equipment that is for sale, the Auctioneer will not be held responsible for the correctness of the descriptions. INSPECT BEFORE YOU BUY! 11. All persons are inspecting, bidding and removing assets at their own risk and liability without recourse on the Auctioneer. Further the undersigned and their employees or agents agree to hold the Auctioneer and their agents and employees harmless from all claims of any kind or type. 12. All sales are in US Dollars. 13. By agreeing to these terms and conditions you signify that you have the authority and you are binding your company, yourself (as an individual and/or employee) and any agents or persons who conduct business using your buyers number and/or under your employment or control. This includes liability as to payment and all disclaimers. 14. Buyer hereby agrees to defend, indemnify and hold harmless the Auctioneer, their directors, officers, employees and other agent representatives from and against any and all liabilities, judgments, claims, settlements, losses, damages, penalties, obligations and expenses, including attorney’s fees, incurred or suffered by such person arising from, by reason of, or in connection with any loss, damage or injury to person or property arising from, by reason of or in connection with the assets sold hereunder. 15. Any controversy or claim arising out of or related to this Agreement, or any alleged breach of the terms hereof, shall be settled by arbitration in accordance with the rules, procedures, and regulations promulgated by the American Arbitration Association (“Arbitration Proceeding”). The arbitration hearing shall be held in the State of Illinois. The Parties hereby agree that the award rendered by the person conducting the Arbitration Proceeding (“Arbitrator”) shall be final and nonappealable, and judgment may be entered upon the award in any court of competent jurisdiction. The Arbitrator shall not have the authority to award punitive damages against either Party. The Party who files notice of demand for an Arbitration Proceeding (“Initiator”) must assert in such demand all claims then known to the Initiator against the other Party (“Respondent”), and the Initiator may amend its demands and claims only with the consent of the Arbitrator. 16. Backup Bidder: If a winner at the auction does not meet obligations to pay for the lot purchased, the next highest bidder will be considered the winning bidder and will be required to close on such purchase within the terms and conditions herein. 17. ADDITIONAL TERMS AND CONDITIONS: The Auctioneer may add other terms and conditions of sale, such additional terms and conditions to be posted online prior to the auction. 18. All online bids are considered offers until the Auctioneer sends out the invoices for the auction, at which time the sale is final. Auctioneer reserve the right to, (1) cancel, suspend, extend or reschedule the sale of an individual lot, auction and/or auction event, (2) make changes to the auction’s closing, inspection, or removal times, or (3) take any other action the Auctioneer deems necessary to affect the fair conduct of this sale/auction. It is recommended that you check your emails often during the auction for updates and/or changes to the auction process.




Payments and Fees


Payment Due Date: Invoices must be paid in full within the time frame specified by the Auctionneer and before removal of any of the assets of the sale unless otherwise specified. No assets will be released until invoices are paid. Accepted Payment Forms: All deposits and balances due shall be payable to the order of HYPERAMS, LLC. Acceptable forms of payment include wire transfer, company check with a bank letter of guarantee, cashier's check, cash. All sales are in U.S. Dollars. HYPERAMS does not accept credit cards. Business/company checks will not be accepted without a letter of verification from your bank similar to the example illustrated below: (Bank Name) unconditionally guarantees payment to HYPERAMS, LLC from (Company Name) up to the amount of __________. This guarantee will be valid for purchases made at the auction of (Auction Name) on (Auction Date). Buyer's Premium: HYPERAMS and its partners impose a buyer's premium on any goods sold to help defray auction expenses. The buyer's premium is a reflected as a percentage that is added to the final purchase price of any item. WEBCAST BUYERS: 18% BP for buyers paying via Cash, Cashiers Check, Company Check or Wire Transfer will apply to your purchase

(Example: a $100 purchase would total $118 with BP) Final Sale Notice: All assets are being sold “AS IS, WHERE IS” and buyers acknowledges they have inspected all assets prior to bidding. While all care was taken in gathering information on the equipment that is for sale, HYPERAMS or its partners will not be held responsible for the correctness of the descriptions. As such, HYPERAMS and its partners recommend buyers, if able, to inspect items before purchasing. All persons are inspecting, bidding and removing assets at their own risk and liability without recourse on HYPERAMS or its partners. Sales Tax: Buyers must pay all sales, export, use and other taxes due to any federal, state or local taxing authority on their purchase. To receive the benefit of any tax exemption, the buyer must supply the auctioneer with a sales tax exemption certificate.




Removal and Shipping Information


Removal and Shipping Responsibility: The Buyer is solely responsible to provide any personnel, equipment, or material needed to pick up purchases and shall assume all responsibility for the removal of any item purchased at the sale. The Buyer is required to remove items within the stated time frame on their invoice unless prior arrangements have been made in writing and approved by the Auctioneer. Insurance Certificates: Buyers may remove assets themselves or hire any rigger company that they so choose. Buyers, or their riggers, must provide the Auctioneer and the owner of the premises of the sale a certificate of insurance in amounts acceptable to the Auctioneer prior to removal of any Lot. On small lots which are considered "hand carry," no insurance is needed. Removal Dates: See Bidspotter for Removal Dates. Items will be considered abandoned, and buyer shall lose all rights to said equipment without recourse or refund due from the Auctioneer after the removal deadline. Riggers: HYPERAMS will provide a list of local rigging companies that have expressed interest in assisting with removals for this auction on Bidspotter. The list is a courtesy only; buyers may choose to pick up lots themselves or hire the rigging company of their choice with proper insurance certificate (see above regarding insurance certificates).