Case Study

Lamonts Apparel

CLIENT: Lamonts Apparel

Gordian Group was retained by Lamonts in connection with its successful bankruptcy reorganization, including raising innovative debt financing to enable the Company’s emergence from bankruptcy.

Business Profiles

Situation

Lamonts was a Northwest-based retailer operating 38 stores in five states, offering moderately priced casual apparel. The Company filed for Chapter 11 in January 1995 after Lamonts’ competitive and financial position deteriorated following a levered buyout. New management was recruited in an effort to implement a turnaround of the company.

Engagement

In October 1996, Gordian Group was engaged to raise financing for Lamonts. Gordian Group performed extensive due diligence on the company and its operations, created a confidential memorandum regarding Lamonts and its prospects, identified potential investors, contacted such investors as part of the capital raising process and arranged meetings between potential investors and Lamonts’ management. Gordian Group was successful in arranging an innovative debt facility to enable Lamonts to emerge from Chapter 11 in November 1997.

Outcome

Group was successful in arranging an innovative debt facility to enable Lamonts to emerge from Chapter 11 in November 1997.