Victory Park Capital Provides DIP Financing to Fuller Brush Company
Victory Park Capital (VPC), an alternative asset management firm that provides direct financing solutions to small cap and middle-market companies, announced it provided the Fuller Brush Company with $5 million in debtor-in-possession (DIP) financing. The financing will provide Fuller with working capital as the 106 year-old company reorganizes under Chapter 11.
The Fuller Brush Company announced on February 22 that it filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
According to chief restructuring officer, Lawrence Perkins, the filing was a necessary means to effectuate a reorganization of the company in an effort to return the company to profitability and restructure its balance sheet. The company has negotiated a new line of credit that provides immediate and ample funds for working capital while undergoing the reorganization. The company is lowering its operating costs, while seeking to broaden its existing revenue streams.
Fuller has 180 employees, the majority of which work from its headquarters in Great Bend. The filing listed assets of between $10 million and $50 million, debts of between $10 million and $50 million.
Perkins said the Company has multiple objectives while in Chapter 11, amongst them is maximizing the revenue streams from the company’s most popular products, while eliminating the production of other, less profitable items, obtaining the financing to reassure its employee, customers, and stakeholders that the company is in business; lowering operating costs to levels that will allow the company to be more competitive in its markets, and driving growth through new market channels and focusing on its most valuable business/product lines.
“Our loan to Fuller is a direct reflection of the value we see in this long-established brand,” said Matthew Ray, partner and co-founder of VPC. “We are pleased to have the opportunity to provide a solution for Fuller that not only addresses immediate capital needs, but brings the operational expertise and strategic counsel needed to restructure the company for future growth,” Ray added.
The Fuller Brush Company develops, produces, distributes and markets a broad line of high quality branded and private label products for personal care, residential and commercial cleaning.
Victory Park Capital provides direct financing solutions to small cap and middle-market companies across a wide range of industries.