Gibraltar closed on another transaction with a food products company, establishing a $10 million credit facility for Dewey’s Bakery. The company was founded in Winston-Salem in 1930 as a retail bakery.
While continuing to operate two retail locations, the company began to expand into commercial wholesale baking ten years ago, primarily as a private label manufacturer serving many of the nation’s most respected food retailers. Now operating two large production facilities with 250 employees, Dewey’s has recently launched its own brand of cookies and crackers. Its owner and CEO, Scott Livengood, believes the company is ready to pursue this forward-looking growth opportunity.
Dewey’s requires increased working capital to support this growth initiative and make the strategic investments necessary to market its brands nationally. With an understanding of the process and the significant funding required to achieve these goals, Gibraltar’s team spent time understanding the company’s requirements and then went to work to create a financial strategy that met the company’s needs.
In this case, Gibraltar developed a plan to make advances, as needed, against all of Dewey’s assets, using accounts receivable, inventory, and machinery and equipment as collateral. Gibraltar, as an expression of its confidence in the company’s prospects, also went outside the box by offering an unsecured over-advance to meet Dewey’s potential needs as it grows.