SSG Capital Advisors acted as the investment banker to United Road Towing in the sale of substantially all of its assets to an affiliate of Medley Capital as part of the process of its Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware. The transaction closed in April 2017.

URT is a national provider of comprehensive vehicle management solutions. Headquartered outside of Chicago, with operations in 10 major markets in eight states, URT operates a platform in the localized and highly fragmented towing and recovery services industry.

Formed in 2005 following its divestment from United Road Services, URT grew rapidly, opened new operations and made multiple acquisitions. The Great Recession had a negative impact on URT’s customers across all segments, leading to budget shrinkage and decreasing the volume of tow service and vehicles available for storage/auction. In response, URT rationalized under-performing locations and focused on profitable operations, however the company faced liquidity constraints which limited further expansion.

A lack of capital and unresolved litigation prompted the company to file for Chapter 11 protection in February 2017 to preserve the value of its business. SSG was retained as URT’s exclusive investment banker to explore strategic alternatives, including a sale of some or all of the business. The sale process attracted significant interest and resulted in a competitive auction process, in which Medley’s going-concern offer was deemed the highest and best price for substantially all of the company’s assets.