Buxbaum Group News - March 27, 2003

CALABASAS, Calif. (3/27/03)--Buxbaum Group today announced that its Asset Appraisal business unit appraised slightly more than $4.0 billion of consumer product inventories during 2002 at manufacturing, wholesale and retail companies on behalf of lending institutions.

The retail segment accounted for 45.7% of the inventories appraised by Buxbaum during 2002, up from 44.4% in 2001; wholesale distribution represented 43.2% versus 42.2% the previous year; and the remaining 11.1% was derived from projects at a variety of combined manufacturing/wholesale distribution and/or wholesale distribution/retail operations, down from 13.4% in 2001.

"This past year was another roller-coaster ride for many consumer product sectors," observes Buxbaum Group vice president Jim Siebersma. "While at certain points there was a sense of optimism throughout the retail industry, results released to date by the publicly owned companies indicate another difficult year. Given this environment, we continue to stress to our lending clients the importance of regularly monitoring the fluctuating value of retail merchandise presented as collateral on loans.

"Those concerns were amplified during the fourth quarter of 2002, when retailers across the board - even the most powerful of discount and mass-merchandise stores - suffered through a dismal holiday selling season," he continues. "In many instances, this resulted in a significant glut of inventory, not just at the retail level, but also at the manufacturing and wholesale levels. Thus, within a 90- to 180-day period, we're seeing the value of certain inventories fluctuate wildly, which is all the more reason that lenders are now monitoring those values on a more frequent basis."

Accordingly, the firm anticipates a spike in the number of inventory appraisals going into the second quarter of this year, as lenders evaluate their clients' year-end results and the impact on the value of the inventory collateral. Concurrently, Buxbaum Group's Asset Recovery business unit, which manages liquidation sales and buys/sells closeout merchandise, is also experiencing heightened activity.

"As retail goes, so go the manufacturing and wholesale distribution sectors," said Paul Buxbaum, chairman and CEO. "Given the amount of excess and slow-moving inventory throughout all markets, we expect our lending clients to be calling for expedient appraisals, as well as assistance in the strategic disposition of such inventories through liquidations. Our closeout group is working feverishly to find global channels of distribution for considerable amounts of distressed, excess and slow-moving inventory."

Buxbaum Group, headquartered in Calabasas, provides inventory appraisals, auctions on both fixed and liquid assets, turnaround and crisis management, as well as other consulting services for banks and other financial institutions with retail, industrial, wholesale/distribution and consumer-product manufacturing clients. The firm also provides liquidation services on an equity or consultative basis for consumer-product inventories, machinery and equipment. Additionally, Buxbaum buys and sells consumer-product inventories on a close-out basis.

Press Contacts: At Buxbaum Group, Paul Buxbaum, (800) 990-6820; at Parness & Associates Public Relations, Bill Parness or Lisa Kreda (732) 290-0121.