With the fourth quarter and the holiday season on the horizon, Ryan Davis of Tiger Valuation Servies checks in with the current state of borrowers in the retail sector amid the current disruptions to inventory and the supply chain, finding that many are in a better spot than might be expected, which could lead to positive deal flow for asset-based lenders very soon.
In response to the COVID-19 pandemic, Tiger Group’s valuation services division issued risk assessment guidance for asset-based lenders on 29 consumer goods categories, noting that fashion apparel, fashion accessories and footwear were the riskiest categories.
The metamorphosis of Amazon from a bookseller to one of the largest retailers on the planet has permanently changed the business landscape. Yet ABL lenders have hesitated to lend against inventory held at Amazon’s warehouses. Tiger Capital’s Andy Babcock and Ryan Davis assuage lenders’ fears. They explain how the Fulfillment by Amazon program benefits sellers and creates a seamless, profitable liquidation process for lenders.