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Case History: Subchapter V Bankruptcy / Chief Restructuring Officer (CRO)

Sporting Goods and Cheer Apparel Distributor

North Atlanta, GA

Fortis was appointed as CRO in a Subchapter V case to oversee the court-authorized liquidation of a multi-brand sports and cheer apparel distributor, executing a phased inventory sale and strategic winddown.

Situation

A prominent sports and cheerleading apparel distributor, operating under several brands including the exclusive license for Pastry footwear, entered Subchapter V bankruptcy proceedings. The company faced deteriorating margins, bloated inventory, and significant licensing and lender pressure. Fortis Business Advisors was court-approved and retained as Chief Restructuring Officer (CRO) to manage the sale process and assist in the company's orderly winddown and transition.

Objective

Fortis was retained as CRO to support the Debtor in a court-supervised process. Responsibilities included developing and overseeing a 13-week cash flow model, preparing for and managing a strategic inventory liquidation, implementing reporting for the Court and interested parties, and supporting the company in transitioning its business and inventory holdings. Fortis worked closely with company management and legal counsel and was authorized to testify if required.

Results​​​

Appointed by court order as Chief Restructuring Officer (CRO) in a Subchapter V bankruptcy case.

Conducted comprehensive liquidation of branded sports and cheerleading inventory over a defined 13-week timeline.

Managed preparation, marketing rollout, and markdown strategy to optimize recovery and generate strong demand.

Maintained ongoing financial reporting and performance monitoring for the benefit of the Court and case stakeholders.

Oversaw a final bulk sale of remaining inventory at the conclusion of the public sale, combining recovery channels for optimal results.

Supported client counsel with court compliance, vendor communications, and operational continuity throughout the engagement.

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