Buxbaum Asset Recovery Case Studies

433 CONVENIENCE STORES
Company management lays-off all employees and allows 433 convenience stores in the Southeast to “go dark” jeopardizing the secured lender’s position on the inventory, much of which is perishable.

Buxbaum is called in by the lender on a Friday evening. In 18 hours Buxbaum has a 40+ person SWAT team, including one of Buxbaum’s senior corporate officers, on site securing stores. Over the ensuing few weeks Buxbaum recovers $2.4 million of cash and cash equivalents (lottery scratch tickets) from the stores; recovers and liquidates over 1 million gallons of gasoline from underground tanks without a single EPA problem; bulk sells beer, alcohol, cigarettes and tobacco products while complying with numerous county, state, and federal regulations; and bulk sells millions of dollars of perishable and non-perishable general merchandise to hundreds of buyers. Buxbaum’s team successfully micro-managed expenses during the entire recovery effort.

The lender’s recovery was more than 20% above projection with total expenses contained at under 11% of gross recovery. Another example of Buxbaum’s unique ability to respond in a crisis to a very challenging situation and still perform above projection while containing expenses.

CHUBBY & TUBBY (Seattle’s Hometown Favorite Store Since 1947)
A victim of the economy and changing times, eclectic sports, outdoor, and garden retailer is forced to liquidate. Started in 1947 as an Army Surplus Store, this local retailer with three locations could not withstand the onslaught from national big box stores.

Buxbaum senior management provided consulting services that allowed stakeholders to liquidate and distribute a maximum payout to creditors. Without Buxbaum’s experience and insight, this small retailer would have been forced into bankruptcy, thus substantially eroding the payout to the creditors with legal expenses and fees. Buxbaum’s Asset Recovery Group ran a successful liquidation exceeding sales projections while bringing in expenses substantially under budget. Buxbaum’s Financial Specialists also acted as Distribution Agents for the company to its creditors further containing expenses and increasing the net payout to the creditors.

Another example of Buxbaum’s depth of talent, experience, and creativity. In this case Buxbaum functioned as Advisor, Liquidator, and Distribution Agent maximizing the payout on a relatively small estate.

DE JONG’S
Since 1896 de Jong’s had been Evansville, Indiana’s upscale apparel and department store. Through the years the company was acquired by a major New York retailer and then divested. The current owner, in his 70’s, was being pressured by mall landlords and wanted to devote his energies to charity work.

Buxbaum was called in to make an equity guarantee to the owner, assuring him of his desired recovery, without any risk. Buxbaum conducted an upscale liquidation, remaining sensitive to landlord issues, as well as the needs of employees and customers who had a lifelong relationship with the company.

Another example of the flexibility Buxbaum can bring to the table. Buxbaum can perform equity transactions quickly and discretely. Buxbaum’s field consultants’ high level of professionalism will fit our client’s needs.