On Monday, July 1, 2019, in the bankruptcy court in Delaware, the United Sporting Companies agreed to be offered for sale for a three-week period starting on July 1, 2019 by Emerald Capital Advisors. Emerald was elected by the Unsecured Creditors Committee in the USC bankruptcy to be their financial advisors. After an extensive review of the pre-petition sales process, and other possible options, Emerald determined that attempting a post-petition sales process through the bankruptcy court presented a unique opportunity for Companies either looking to get into the firearms distribution business or to expand current operations.
John Madden, CEO of Emerald, stated that, “This will be a challenging process with only three weeks to find a buyer, but we are very focused on this space and know that this is a critical market channel for many and while the financial loss of unpaid balances is bad, the total loss of that source of revenue going forward can be even worse. We believe the ability to utilize the Bankruptcy Code creates a significant value play for a party to purchase these assets at a steep discount and quickly right-size and revive the Company.” Michael H Blank, a Managing Director at Emerald, and their industry specialist, further noted that “Those of us who are also participants in the industry know what a tough couple of years everyone has had, hopefully this is the bottom of the trough and the cyclical low point. The whole reason I chose to work with Emerald is their focus on preserving value inherent in companies and organizations when possible, so I’m hoping I can help them pull off a win for the industry here by not letting all the subsidiary companies, their brands and most importantly the jobs for their employees vanish without a fight.
Emerald Capital Advisors specializes in distressed transactions, advising on restructurings and special situations. The professionals of Emerald have advised distressed companies or their constituents across all levels of the capital structure on a myriad of transactions ranging from large complex deals to small unique situations. Emerald has successfully closed more than $115 billion in transactions.
Emerald encourages anyone interested in purchasing all, or substantially all, of the assets of the United Sporting Companies to contact Ryan Feulner by email: email@example.com or calling: 646-218-9866.