Case Study: Royal International

Situation

Royal Hardware & Famous Home Fashion is a Distributor of Hardware and Domestics serving mass market and independent retailers in the U.S. and Canada. With gross revenues in excess of $35,000,000 they are one of the leading suppliers of domestics and hardware in North America.

Increasing costs forced the Company to end most of its programs with its largest customer, Home Depot. After making the decision to cease the relationship with Home Depot management decided to completely divest itself of the Hardware business. Further exacerbating the situation, the Canadian dollar dropped 15% in a 3 month period – increasing the Company’s inventory costs.

Tiger’s Role

The Company turned to Tiger to run an expedited sale process of the Hardware business, as well as to liquidate excess inventory. Tiger recognized the value of the business was declining precipitously and the creditor had little patience for a lengthy sale. Tiger contacted a buyer who had expressed interest in the business. Tiger negotiated and finalized terms in 15 days after our engagement and closed the transaction within 30 days of being engaged.

The cash sale provided enough liquidity to allow the Home Fashion business to operate through its high selling season. The company was then able to refinance its senior debt and avoid insolvency.

Today

Famous Home Fashions continues as a thriving designer, manufacturer, and distributor of domestics.