Case Study

London Fog

CLIENT: London Fog

Gordian Group advised the Company in connection with its first successful Chapter 11 restructuring.

Business Profiles

Situation

London Fog was a leading designer, marketer and distributor of quality men’s and women’s rainwear and outerwear in the United States, and, through its wholly owned subsidiary Pacific Trail, also marketed and distributed casual, active and performance outerwear for men, women and children. London Fog suffered from over-leverage and poorly performing retail operations. The Company filed for Chapter 11 protection in order to avail itself of certain benefits, including shutting down operations and rejecting leases. Through management’s efforts to improve and restructure the operations, London Fog was able to demonstrate to its creditors that a valuable core operation remained.

Engagement

London Fog commenced a comprehensive review of its operations and financial condition, and engaged Gordian Group to advise the Board of Directors regarding, among other tasks: (i) various business plan options, (ii) restructuring alternatives and, (iii) negotiating and structuring a plan of reorganization. In particular, Gordian Group’s valuation work was pivotal to London Fog’s gaining consensus among its various constituencies with respect to a consensual plan of reorganization.

Outcome

Gordian Group advised the Company in connection with its first successful Chapter 11 restructuring.