PROJECT SUCCESS STORIES AND CASE STUDIES
Auctions, Sales, Retail/E-Commerce Store Closings, Reverse Logistics, and Inventory Management
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.
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.
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.
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.
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.
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
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.
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
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
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
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.
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
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
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
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
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.