Prior to marketing the assets Tiger took critical steps to secure the assets and reduce expenses most notably the third party logistics facility used for pick, pack, and ship carried high monthly expenses, and a bulk storage warehouse approximately 30 miles away could accommodate the inventory. Within a week of engagement Tiger field consultants had consolidated the inventory to the central warehouse.
Tiger also recognized the inventory was not accurately represented on reports, nor was the warehouse well organized. Tiger rehired warehouse employees and managers and relaunched the WMS system – allowing our team to prep the inventory for potential buyers. When buyers toured the facilities they saw a busy warehouse with activity versus a dark company.
Tiger then targeted competitors and marketed the assets as a “turnkey” businesses. All inventory and a significant amount of equipment were sold to a competitor through a sealed bid process. The buyer kept the assets in place and signed a new lease with the landlord. Residual assets such as real estate and equipment were sold a month later at online auction. The accounts receivable were collected.