client_transactions

SSG Client Transactions

Title

Joan Fabrics Corporation
Client Profile

Client Profile

Joan Fabrics Corporation ('Joan' or the 'Company') is a specialized textile fabric company focused on the residential, commercial and hospitality furniture markets in the United States, Canada and Mexico. The Company manufactures upholstery fabrics in its state-of-the-art plants in North Carolina and Mexico through its Circa, Doblin, Joan Home Fabrics and Mastercraft product lines.
Situation

Situation

The Company suffered liquidity constraints and stretched payables terms due to a downturn in the domestic furniture industry and an inability to sufficiently control operating costs. On April 10, 2007, Joan filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code. This filing enabled the Company to receive DIP financing which allowed operations to continue while the sale process was conducted.
Solution

Solution

Joan hired SSG to affect a Section 363 sale for its Circa 1801, Contract and non-operating assets. The Section 363 auction process drove value from a stalking horse bid of $13.4 million for the non-operating assets to $29.3 million for substantially all of the Estate's assets including the operating assets, resulting in a 118.7% increase in value from the stalking horse bid.
July 2007
have been acquired by
The undersigned acted as Investment Banker to
Joan Fabrics Corporation on this transaction.

Call to learn more

Call to learn more

If you would like to learn more about this transaction, or any of our transactions, call us today.

Philadelphia
(610) 940-1094

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New York
(212) 786-7432

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