Buxbaum Group has announced the formation of a new subsidiary, BC Commercial Finance, to oversee its hard-asset lending division.

“Loan demand was so high that we quickly realized the need for a separate group to satisfy the clients’ needs,” explains Richard Ellis, the new group’s manager. In the first two months of operation, BC Commercial Finance wrote over $7 million in new loans, including funding for turnarounds, start-ups, refinancings, and bridge loans.

BC Commercial Finance lends directly against the value of borrowers’ collateral, offering loans of $250,000 to $15 million in all 50 states and Canada. Financial statements are not required. Visit the company’s website at www.bccfonline.com for more information.

“We were trying to find the best fit for an investor or an acquirer, and Bear Stearns was clearly the best option,” says Paul Buxbaum, who remains an investor and on 7’s board of directors. “From the shareholders’ point of view, this allowed the founder to stay on and continue building the business with a merchant banking partner that has a fantastic track record of being able to take companies with a vision and help them grow. They’re smart, strategic thinkers and implementers, not cookie-cutters. In the final analysis, we viewed this as a great marriage for both entities.”

“Following the transaction,” adds Buxbaum President David Ellis, “7 For All Mankind is now poised to execute its strategy of becoming a premium lifestyle brand, with the hip, fashionable edge that it enjoyed in denim.”

With those matters now behind, it was time to address the company’s operational issues. “The biggest problem faced by Gramicci, was its inability to produce and ship its goods in a cost-effective and timely manner,” observes David Ellis, President of Buxbaum Group. “Approximately 80% of its finished production was being done in the U.S., with the balance done offshore. The company’s production delays led to cancellations and chargebacks, which together with the high costs of domestic production, placed a burden on the company’s bottom line.”

Arnold Rubenstein, Buxbaum Group Vice President of Merchandising & Field Operations and a highly respected veteran of the apparel industry, was appointed Operations Manager for Sole Assets Holdings. In this capacity, he was responsible for running day-to-day operations and, more importantly, revamping the way the company does business. “Arnold’s hands-on approach to management was a significant factor behind the Gramicci turnaround,” asserts Paul Buxbaum.

Working in consultation with other members of Buxbaum’s senior team, Rubenstein restructured Gramicci’s back office and all of its operations. Key among those moves, Rubenstein developed and sourced overseas suppliers and operations that now assemble 80% of the company’s finished goods. This led to lower costs and greatly improved delivery times. Under Rubenstein’s direction, the company has also rebuilt its sales team.

As a result of these efforts, Sole Assets Holdings and its highly regarded brand are back on firm footing. As Paul Buxbaum sums up: “A year ago, Gramicci lost close to $7 million. This year, it will be firmly in the black again, poised to regain the strength of its customer base.”