Latest Case Studies

Coldwater Creek

Jun 10, 2021, 10:34 AM
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.
Title : Coldwater Creek

Size
$250MM

Scale
366 stores
Context
Strategic Partnerships

Description

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. 

Solutions Provided

  • Provided capital for unwanted assets
  • Managed liquidation of 366 retail stores
Asset Category : Apparel & Textile
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