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| Client: |
The Art Store, Inc. ("The Art Store" or "The Company") |
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| Purchaser: |
Dick Blick Holdings, Inc. |
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| Business: |
A leading specialty retailer of branded and non-branded artist supplies, materials and accessories. |
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| Client Objective: |
For more than a decade, The Art Store built a reputation as a "destination location" by providing one-stop shopping for professional artists, art students, aspiring artists and small businesses. The Company experienced financial difficulties when some of its expansion stores, for which it had borrowed heavily, failed to work out as planned. BGL was hired to manage the sale of the Company's remaining profitable urban-based stores under Section 363 of the U.S. Bankruptcy Code. |
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| Results: |
BGL conducted a broad marketing process to strategic and financial acquirers. As a result, a stalking horse bidder was established while interest was solicited from other parties. BGL was required to complete the marketing process and sale in just three months in order for the new owner to fund working capital necessary to support the critical back-to-school August retail season. BGL rose to the challenge, drew on its extensive retail and wholesale distribution experience, and ultimately captured a premium valuation of more than 11-times trailing-twelve-months EBITDA. |
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