Case History: MCA Impact, Cash Flow Strategy & Turnaround Planning
Multi-Location Uniform Apparel Retailer
Florida & Georgia
When MCA debt and inventory strain pushed a growing uniform retailer toward collapse, Fortis stepped in to stabilize operations, accelerate collections, and guide a turnaround—ultimately enabling new ownership to thrive.
Situation
A regional uniform retailer with locations in Florida and Georgia was facing an operational and financial crisis. Despite a strong customer base and consistent revenue, the business was experiencing a severe cash flow shortage, driven by stacked Merchant Cash Advance (MCA) loans, over-inventoried stores, and a lack of financial discipline. A serious buyer backed out at the last minute, citing systemic issues that would take years to unwind—leaving the company vulnerable and underfunded. With the SBA lender aware of the MCA exposure and a key employee still committed to the business, the Factor lender referred Fortis to help.
Objective
Fortis Business Advisors was retained to evaluate the full picture—assets, operations, organization, and financials—and determine whether the business could be salvaged or sold. While an accurate valuation was unattainable due to accounting inconsistencies, Fortis moved swiftly to improve financial visibility and stabilize cash flow. A key goal was to help the company weather the crisis, protect stakeholders, and position the operation for transition—whether by sale, restructure, or owner-led wind-down.
Results