Lending to companies in distressed or turnaround situations reflected a strategic and risk-conscious approach as lenders navigated the ongoing economic uncertainties of 2024. Asset-based lending and debtor-in-possession financing remained critical tools for businesses requiring immediate liquidity to stabilize operations. Lenders prioritized sectors with tangible collateral, such as manufacturing, retail and energy, to mitigate risk. Non-bank and private credit providers played a significant role, offering tailored financing solutions to support restructuring efforts and operational recovery. Refinancing and recapitalization deals gained momentum, enabling companies to reduce leverage and enhance liquidity. ESG factors also influenced turnaround financing, with some lenders favoring sustainable recovery plans. Overall, the market demonstrated adaptability, ensuring distressed companies could access capital to rebuild and achieve stability.
Deal Spotlight: Gordon Brothers
- Category: Turnaround
- Lender: Gordon Brothers
- Deal Size: $100MM
- Borrower: Jo-Ann Stores
- Industry: Retail / Arts & Crafts
Gordon Brothers Provides $100M Exit Facility for Jo-Ann Stores
Gordon Brothers has committed $100 million as Agent for Jo-Ann Stores LLC, supporting the retailer’s restructuring and liquidity needs. Previously, Gordon Brothers provided a first-in, last-out credit facility to enhance Jo-Ann’s balance sheet.
“We’re proud to assist this category leader in sewing and crafts during its restructuring,” said Kyle Shonak, Senior Managing Director at Gordon Brothers.
Gordon Brothers offers tailored capital solutions, investing in assets like inventory, real estate, and brands to support clients undergoing transformation. Founded in 1903, the firm is headquartered in Boston with offices worldwide.
Jo-Ann Stores operates 840 U.S. locations and an ecommerce platform.
