BUXBAUM
ASSET RECOVERY CASE STUDIES
FAO, INC.: CLOSING UP SHOP DURING THE MOST COMPETITIVE SEASON EVER
Commander Luke Skywalker's own 35-foot-long X-wing fighter, with R2D2 in the rear, sold for $13,200 to a Star Wars buff; an authentic, 12-foot tall, 6,000-pound FAO Schwarz Bronze Bear went for $11,800 to a Seattle day care center.
John Trowbridge
Stevan Buxbaum
These specialty items, along with a plethora of Talking Trees, Roaring Lions, Talking Dinosaurs, Curious Georges, Clock Towers, gas-powered junior Hummer vehicles, and a variety of other toys, educational games, collectibles, fixtures and equipment, were successfully liquidated from all 15 FAO Schwarz and 142 Zany Brainy stores nationwide over the 2003 holiday season. The sales commenced in early December, with Buxbaum Group and its joint venture partners acting as exclusive agent for the liquidations.
Buxbaum Group Operations V.P. John Trowbridge states: "We maximized the recovery by capitalizing on the excellent reputation that FAO Schwarz and Zany Brainy have. But this was still a challenging project, as the stores carried price points from $1 to $20,000. This meant you are working with a gamut of potential customers, from your typical mall shopper to multi-millionaires." Trowbridge adds that online auctioneer eBay was a key resource in liquidating unique, custom fabricated displays and store fixtures from the world's most famous toy store.
"Through the liquidation process, Buxbaum Group and our partners helped creditors and lenders maximize their return on assets from FAO," Trowbridge says. "Our sound marketing strategy allowed us to sell large volumes of unique merchandise, with a huge range in value. Also, working with the world's ultimate toy store was plenty of fun. It is not often you get in the business of selling jelly beans by the pound, alongside limited edition Steiff teddy bears."
MAXIMIZING RETURN ON A BOOK DISTRIBUTOR
Troll Communications, a trusted distributor of high-quality children's literature since 1958, was ceasing its operations. Buxbaum Group was retained to handle the daunting liquidation of an inventory of 26 million children's books, equivalent to an 18-month national supply.
"It was an incredible undertaking to liquidate such a heaping amount of inventory - which could have provided a book for every child under the age of five in America," notes V.P. Stevan Buxbaum, who directed the project. However, the firm was able to sell every single item, along with the equipment and fixtures in the company's 400,000-square-foot facility in Memphis—all within a 120-day timeframe.
Troll's secured lender got a turn-key deal, with Buxbaum handling all facets of the liquidation. The sale was completed without the need for an auction. As a result, the bank maximized on its collateral without any unexpected additional expenses.
SELLING OFF FIXTURES AT AN UPSCALE DEPARTMENT STORE
In January, Buxbaum Group helped an upscale department store chain shutdown an under-performing location at a major Texas mall.
The firm purchased all of the store's fixtures and equipment from the company, allowing store officials to focus on other pressing matters. "For us, this was a unique arrangement, with our on-site fixture sale conducted simultaneously with the store's own final merchandise sale," says V.P. Stevan Buxbaum. "Our on-site team was able to work effectively with all concerned parties, including mall management, to help ensure a smooth shutdown."
In addition to traditional hanging fixtures and display cases, Buxbaum liquidated such pricey specialized display items as Chinese vases, antique farm tables and chairs, and armoires. In the end, store officials said they were pleased with Buxbaum Group's efficiency and professionalism and warmly invited them to bid on projects down the line.
