Client Overview
MCA Financial Group was engaged by a specialty outdoor retailer with national e-commerce reach and physical locations in the Mountain West. The company employed approximately 120 individuals and generated annual revenue of $30–40 million. It offered niche sporting goods, including seasonal and high-performance equipment, to consumers across the U.S.
Situation
Post-pandemic financial pressures and over-leveraged working capital significantly reduced liquidity, risking operational continuity. The company elected to pursue an Assignment for the Benefit of Creditors (ABC) to conduct an orderly sale of assets, preserve business value, and maximize recovery for creditors.
Our Role
MCA was retained to manage the full lifecycle of the distressed sale. Responsibilities included:
- Structuring and managing the sale process within an ABC framework
- Preparing targeted marketing and due diligence materials
- Leading negotiations between the secured lender, company leadership, and the ultimate buyer
- Overseeing the Assignment Estate, including creditor notices and claims administration
Challenges & Execution
Stakeholder alignment was critical, as priorities diverged between the secured lender, management, and the potential buyer. MCA actively facilitated negotiations among all parties while maintaining momentum in the sale process. When closing delays with the selected buyer placed unexpected pressure on working capital, MCA responded by intensifying cash flow oversight and implementing contingency measures to ensure business continuity.
To mitigate downward pricing pressure and deter re-negotiation attempts, MCA fostered competitive interest from other prospective buyers. These efforts preserved, and even enhanced, transaction value and sustained deal leverage. MCA also assumed an expanded role in transaction negotiations and documentation, bridging gaps between parties to finalize agreements efficiently.
Outcome
The transaction closed successfully in April 2025, exceeding expectations for creditor recovery. MCA’s strategic process execution and advocacy on behalf of the estate played a key role in protecting the guarantor from significant financial loss and delivering a higher-than-anticipated outcome in a distressed environment.
Value Delivered
- Maximized sale proceeds through a competitive bid environment
- Sustained operations amid severe liquidity constraints
- Aligned disparate stakeholder interests to prevent deal erosion
- Facilitated timely transaction close despite buyer delays
This engagement underscores MCA Financial Group’s deep expertise in navigating complex, high-stakes distressed situations. Through strategic sale management, disciplined cash flow oversight, and proactive stakeholder alignment, MCA helped maximize value, protect the interests of all parties, and deliver an exceptional outcome under intense financial pressure. Whether facing liquidity challenges, pursuing an Assignment for the Benefit of Creditors, or seeking a path forward in a distressed environment, businesses can rely on MCA’s proven ability to preserve value, maintain operational continuity, and drive results.