To get a feel for how excited some Canadians are about the prospect of foreign brands entering the country, take a look at the columns of Marina Strauss in The Globe and Mail newspaper. The Toronto-based retail reporter maintains a vigilant watch for the latest scuttlebutt about the Canadian “invasion plans” of chains such as Target, Nordstrom, Bloomingdale’s and Lowe’s. Likewise, the press releases and […]
In the topsy-turvy period that followed the financial meltdown of 2008, the U.S. economy weathered the liquidation of thousands of companies, including big-name retailers such as Circuit City, Goody’s, Mervyn’s, Gottschalks, and Ritz Camera, to name a few. But the change in market conditions meant that a large number of companies needed updated appraisals right away. The resulting backlog forced the secured lending community to […]
When a borrower goes into Chapter 7, it’s natural to focus on the endgame: liquidation. After all, operational concerns come to the fore only in cases involving reorganization, right? Not necessarily. Consider our largelot sale of the majority of former assets from one of North America’s biggest auto parts suppliers — Fenco (Fenwick Automotive Products Ltd., and Introcan).
A major supplier to the likes of AutoZone, […]
The rapidly changing retail food sector shows no signs of slowing down. But while the overall growth in this space is noteworthy, it is arguably more interesting to consider where this growth is occurring: Mass merchants such as Walmart, Target, Costco and even dollar stores and drugstores continue to seize market share from traditional food retailers. Meanwhile, the foodie and healthy-living trends have been driving […]
Judging liquidation firms based on their experience with particular asset types has a certain logical consistency. For instance, if your goal is to qualify yourself to a major meatpacking company, the thinking goes, you should seek a firm with years of experience in liquidating meatpacking assets. Upon closer examination, however, this logic breaks down. Today’s marketplace demands not merely depth of experience in certain sectors, […]
The notion that food is a safe-harbor business in rocky economic times is as old as the phrase “People have to eat.” And safer harbors, of course, tend to attract lots of ships, which is why food can be found nearly everywhere today. Perishable and non-perishable groceries, for example, are routinely available in the drug and dollar stores that are blanketing the country. This trend […]
Appraisal firms are often asked by lenders if condensing a retail chain’s store base early on, or even prior to, the beginning of a liquidation sale will enhance the overall net recovery value (NOLV) of the inventory. Early closures present unique expense savings opportunities to liquidators since bankruptcy court protections can allow for the exiting of locations prior to actual lease termination dates. On paper, […]
The global backlash against plastic bags — visible in the form of taxes and outright bans on grocery and merchandising bags made of blown-film plastic—threatens to undermine the recovery value of dedicated M&E in this sector. And it is worth noting that the production line equipment used to make these increasingly demonized products typically is no small investment: The latest versions of so-called bubble or […]
Secured lenders and disposition firms tend to see life through the same looking glass. After all, they both have their greatest success during volatile markets as a result of opportunities created by the downturns and upturns of the business cycle. Unfortunately, the data over the past 36 months tell a consistent story: The economy is as stable as it is flat.
According to Thomson Reuters LPC […]
Experienced appraisers know to never value a piece of equipment as though it were in a vacuum, because understanding equipment use is at least as important as its specs when projecting realistic market recovery. The differing applications of like equipment as is used within the pharmaceutical or nutraceutical (nutritional and herbal supplements) sectors are a case in point.
Previously, Tiger liquidated the assets of Creation’s Garden, […]
