Restructuring and Dispute Resolution case study: Costume company transaction

    tnt year in review


    Representative of unsecured creditors and asset sale


    Manufacturing – Costume manufacturer and distributor

    Engagement scope

    With margins shrinking and having unsuccessfully refinanced debt with multiple lenders, a leading costume manufacturer and distributor feared that they would have to close their doors forever. The impact of the coronavirus pandemic further complicated their financial position, so they filed for protection under Chapter 11 of the U.S. Bankruptcy Code. CohnReznick was referred to this case by a member of the committee and an attorney representing the unsecured creditors.

    What we did

    CohnReznick served as the financial advisor to the official committee of unsecured creditors in the company’s case. CohnReznick worked with the debtor’s management team and their financial advisors to assess the viability of the debtor’s businesses as a stand-alone company or through a sale with additional equity infusions.


    Through a successful 363 sale process (named after the Bankruptcy Code section that allows a debtor to sell its assets), the company was sold to a new operator, positioning it to continue for years to come.  Had the company been forced to shutter its doors, general unsecured creditors would have received zero recovery. Based upon the successful sale of its assets, general unsecured creditors could receive as much as fifty cents on the dollar.

    Following the completion of the sale, CohnReznick is now serving as plan administrator for the company.


    Kevin Clancy, CPA, JD, CIRA, CFF, Global Director, Restructuring and Dispute Resolution


    Subject matter expertise

    • kevin clancy
      Contact Kevin Kevin+Clancy
      Kevin Clancy

      CPA, JD, CIRA, CFF, CTP, Global Director, Restructuring and Dispute Resolution Practice

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    tnt year in review

    Year In Review: Transactions & Turnaround Practice

    This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.