Americal Corporation

Client Profile
Peds® is a leading brand of “value added” footies and sports socks with a full line of product offerings for the entire family. The brand, owned by the Americal Corporation, (“Americal” or the “Company”) is considered synonymous with low-cut socks and foot covers, and has been a cornerstone of Americal’s sock business for over 30 years.
Situation
Despite the continued popularity of the Peds® brand among consumers, the brand’s profitability was adversely impacted by continually declining profit margins within its primary distribution channels. Americal retained SSG Capital Advisors to structure a sale of the Peds sock brand in order to provide liquidity for the remaining Americal businesses.
Solution
On April 7, 2004, Americal filed for Chapter 11 Bankruptcy protection in the Eastern District of North Carolina Raleigh Division, with International Legwear Group, Inc. (“ILG”) as a stalking horse bidder. In addition to its stalking horse bid, SSG negotiated with ILG to provide additional DIP financing which allowed Americal to continue to supply customers with goods. In a competitive auction, ILG was the highest bidder at approximately $29 million, up substantially from the stalking horse bid of $23.5 million.