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Case History: Pop-Up Liquidation & Asset Monetization

Consumer Bedroom Furniture:
The Discount Bedroom

Nationwide

Fortis was engaged by a secured lender to maximize recovery on bedroom furniture inventory following borrower default, executing an unconventional multi-phase monetization plan.

Situation

Following borrower default, a secured lender elected to take possession of a borrower's inventory, primarily bedroom furniture stored within Wayfair's logistics network. Despite Fortis's initial advisement against direct takeover due to logistical and retail limitations (Fortis advised liquidating through Wayfair's channels), the lender proceeded, and Fortis assisted with orchestrating the relocation of the merchandise to a third-party warehouse facility. Fortis was retained to create, structure, and implement a monetization strategy using the recovered goods, despite challenging conditions including disconnected consumer demand, high freight costs, and a remote warehouse location.

Objective

Fortis was tasked with launching an entirely new business unit to facilitate the sale of the inventory. This included evaluating the inventory condition, assisting with inbound freight coordination, setting up a pick-and-pack 3PL system and operation, and designing a retail sales model. Fortis also developed a go-to-market strategy through both e-commerce and localized social media targeting. Ultimately, when shipping costs and order fulfillment limitations undercut profitability, the furniture was positioned for a bulk-sale strategy to monetize the remaining assets and return proceeds to the lender.

Results​​​

Established full inventory control through comprehensive receiving, itemization, and warehouse setup for overstocked bedroom furniture across multiple SKUs.

Built and launched a dedicated brand and e-commerce website to sell furniture directly to consumers.

Implemented a localized sales initiative targeting buyers near the warehouse via hyperlocal digital advertising and social media engagement.

Developed a performance-tracked liquidation cash flow model to project returns, factoring in Net Orderly Liquidation Value (NOLV), fulfillment costs, and market constraints.

Advised lender on limitations of consumer direct sales given elevated freight rates and saturation in online furniture retail.

Due to where the merchandise was being stored, all remaining goods were sold through a bulk sale to the Fortis-referred logistics partner.

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