Based on previous work conducted on behalf of JCPenney, the company built a strong rapport and level of trust with Hilco. When faced with the need to formulate a solution for excess inventory without closing stores, JCPenney asked Hilco to help. Working with JCP, Hilco implemented and tested a program featuring three different clearance concepts within their stores. Based on the test, Hilco and JCPenney selected the preferred concept, refined the program, and rolled it out to a broader network of stores.
As the largest, and one of the most talked about, going out of business events of all time, Hilco and its partners were trusted and retained to drive maximum value from the inventory and fixed assets in the stores and distribution centers. Hilco had a keen sense of the business, being the appraiser on record and having conducted multiple sale events for the company through the years, which paid dividends when operating TRUs retail locations and managing the exit from the Distribution Centers.
Operating under a fee for service structure, this retailer retained Hilco to help monetize $132MM of non-conforming inventory and end of season shelf pulls. Hilco was able to successfully negotiate a deal in which all inventory was purchased by a single buyer at a price in excess of the retailer’s expectations, and over 150 trailer loads were transported within a week of funding.
Partially due to our robust international and Canadian experience, Hilco was engaged to lead the financial and operational components of Target’s exit from Canada. Target took an aggressive Canadian stance, entering the market with its first store in March 2013 and expanding to over 130 stores only a year and a half later. Ultimately, Target Canada needed to be closed and they sought professional help to wind-down the chain in an orderly manner; maximizing proceeds while minimizing liability and cost. Hilco micro-managed the sale of 133 locations and $700MM in inventory was monetized on Target’s behalf, allowing management to focus on their go-forward multinational operations.