Business Capital Recapitalizes Facility for Home Improvement Co.
Business Capital announced it recently restructured $5.3 million of creditor claims out of court and recapitalized a credit facility for a home improvement provider focused on women do-it-yourselfers.
The company, founded in 2005, quickly grew from a website to a multimillion dollar enterprise that attracted interest and financing from a venture capital firm. The business was hit hard by the economic crisis recession 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 and incumbent lender were unwilling to continue providing funding. Business Capital was introduced to the client by the law firm retained to initiate bankruptcy proceedings.
Business Capital 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 profitably.
The company supplies women with the products and knowledge necessary to complete home projects.