Simplicity for Children, Inc.

Client Profile
Simplicity for Children, Inc. (‘Simplicity’ or the ‘Company’) is a privately held (Subchapter S) juvenile furniture importer and distributor that was founded in 1988. Simplicity supplies cribs, case pieces, changing tables, toddler beds, bassinets, play yards and swings to mass merchants and specialty retailers. The Company is based in Pennsylvania and has additional operations in China.
Situation
Due to rising labor costs in its foreign operations and unforeseen legal liabilities, the Company experienced declining margins and liquidity constraints. As a result of the aforementioned conditions, Simplicity was unable to adequately market its products and undertake new research and development activities.
Solution
SSG was hired as exclusive investment banker to advise the Company regarding strategic alternatives, including the sale of its equity and/or debt. Professionals at SSG marketed the Company to a wide range of strategic and financial parties, ultimately receiving multiple offers for the Company. After careful consideration regarding Simplicity’s working capital needs and stakeholder objectives, SSG chose to effectuate a UCC Article 9 sale with an affiliate of Blackstreet Capital Management.