Financial Advisor

Lexington Park, MD

Lenox designs, manufactures, and sells tabletop products, giftware, and collectibles which are marketed under the Lenox, Dansk, and Gorham brands. It offers its products through its nationwide store base, online, and via wholesale to big-box retail stores. Lenox’s manufacturing facility is in Kinston, North Carolina.

Lenox was formed via a series of acquisitions, including certain assets of Lenox Group Inc. and Reed and Barton, among others. Lenox faced a declining overall market at a low double-digit annual rate.  The Company faced challenges in developing and implementing a transformation that re-positions its brands and products for an entirely new generation of customers while remaining true to its heritage.

Key Challenges
Liquidity Constraints
Covenant Default
Tight Working Capital Position
Leveraged Capital Structure

Engagement Highlights

  • Reviewed the Company’s business plan, including historical and projected financials, to identify key assumptions and ensure an achievable plan.
  • Analyzed sales trends at the customer level, including key customers in Lenox’s big-box retail store channel and online sales.
  • Reviewed margins and analyzed historical trends across business segments (i.e., retail, wholesale, and direct-to-consumer).
  • Reviewed Lenox’s overhead cost structure and identified opportunities for reductions.
  • Assessed the Company’s liquidity situation and identified opportunities to conserve cash in the short term to ensure covenant compliance and sufficient runway for management to execute their business plan.
  • Worked with management to sell excess inventory to generate sufficient liquidity to pursue a business turnaround.
  • Worked with management on a restructuring plan for the business which included significant SKU reduction at the same time introducing several lines of new lifestyle products, exiting the Company’s own retail stores and increasing drop ship business supporting major retail customers on-line sales.
  • Help support and oversee sale of the business to a private equity sponsor.
  • Prepared a 13-week cash flow analysis and borrowing base calculations to project any near-term liquidity needs.

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