Wickes, Inc.

Client

Wickes Inc. was a national distributor of building products with approximately 60 operating locations and annual sales of more than $450 million.

Challenge

Wickes had substantial leverage and generated lower than expected operating results. As a result, a severe liquidity crisis led to a bankruptcy filing in January 2004 in the Northern District of Illinois.

Solution

Bridge was engaged as crisis manager to assist the Debtor in its restructuring. Bridge assisted in developing a business plan designed to enable the Debtor to finance its operations and support an exit mandated by the Company’s lenders by July 2004.

Results

Bridge was able to assist the Debtor to raise financing to support the Debtor’s business plan, including $15 million in additional DIP financing, junior to a $110 million dollar facility approved at the beginning of the case. In order to facilitate the lenders’ exit requirements, a process was put in place to market substantially all of the Debtors’ assets. This process was managed jointly by Bridge for the Company and the Unsecured Creditors’ Committee financial advisors. Substantially all of the Debtor’s operating assets were sold for over $140 million, generating a full recovery for secured lenders.

After the sale, Bridge continues to act for the Debtor and has been actively involved in the process seeking to draft a plan of reorganization.