After failing to find a going concern buyer for its business, as a function of its bankruptcy, Hilco successfully submitted a joint bid with private equity firm Sycamore Partners to purchase Coldwater Creek. Collectively, Hilco and Sycamore saw opportunity for Coldwater Creek to shed its stores and continue as an e-tailer, in large part due to the goodwill behind the brand. Hilco purchased and sold $250MM worth of inventory and FF&E while ultimately shedding Coldwater Creek’s 366 stores. After the sale, Sycamore was able to leverage Coldwater Creek’s substantial brand equity to relaunch the company as a catalogue and online retailer. Our thesis was correct – Coldwater Creek is still successfully operating today.
Problem to Solve
- Coldwater Creek, in distress, sought a going concern buyer to operate the company on a go-forward basis and provide financial stability. While certain buyers were interested in certain assets, no deal could be reached.
- Hilco and private equity firm Sycamore Partners identified an opportunity for the retailer to shed its store base and continue its operations online only.
- Provided capital for unwanted assets
- Managed liquidation of 366 retail stores