Case History: "Pop-Up" Liquidation
Athleisure Apparel & Gear:
Kit & Ace @ Namasday
Atlanta, GA
Unsecured creditors involved in a retailer's Assignment for the Benefit of Creditors' case can generate recovery and lost capital through alternative monetization strategies.
Situation
Kit & Ace is a Canadian-based athleisure apparel company created by the family behind Lululemon. With intentions to make Kit & Ace a household name in high-end street apparel, after two years the company had effectively over-expanded into 61 locations throughout the world before adopting a change in strategy to focus on eCommerce and their Canadian stores. Overnight Kit & Ace shuttered all brick and mortar locations in the US, UK and Australia, and to help minimize damages executed an Assignment for the Benefit of Creditors and surrendered the inventory to several of their landlords. Fortis Business Advisors was brought in to help with the merchandise at the Atlanta, GA location, which had effectively become a “dark” store housing inventory with customers peering through the windows wondering if the location would re-open.
Objective
The landlord considered several options for recovery and decided that the most effective strategy was to bring Fortis in to reopen the store but at a “pop-up” location so that the original space could be leased to a new tenant. Fortis leased the “pop-up” location and named it NamasDay Sportswear, then took possession of the inventory and transported it to NamasDay. Fortis then re-merchandised the inventory for liquidation, set up the operation from zero-based budgeting, and executed a high-impact marketing strategy which was effectively driven through social and online media, email marketing, and canvased flyer distribution.
Results​​​