Business Capital Assists Home Improvement Provider’s Creditor Claims
Commercial finance firm Business Capital announced that it restructured $5.3 million in creditor claims out of court for a home improvement provider.
The company is a leading brand in the do-it-yourself home improvement space, dedicated to supplying women with the products and knowledge necessary to complete home projects. Founded in 2005, it quickly grew from a website to a multi-million dollar enterprise that attracted interest and financing from a venture capital firm.
The business was hit hard by the economic crisis and the resulting deterioration of the housing and construction industry. Facing liquidity constraints and overburdened by debt, the company was in financial distress and its current investors were unwilling to continue providing funding. Business Capital was introduced to the client by the law firm retained to initiate bankruptcy proceedings.
Business Capital successfully worked closely and efficiently with each of the company’s creditors, presented the facts and expedited the settlement process. By dealing amicably and efficiently with the creditors, the process was fast and cost-effective. The restructuring reduced the company’s debt by over 80% and allowed them to pay their creditors, avoid a bankruptcy filing and continue to operate.
“Implementing Business Capital’s proprietary out-of-court restructuring solution resulted in significant reduction in costs and delay, allowing our client, who could not have afforded the administrative costs of a Chapter 11 to restructure, re-capitalize and continue to operate,“ said Chuck Doyle, managing director of Business Capital.