CLIENT TRANSACTIONS

Cherrydale

Company

Headquartered in Lansdale, Pennsylvania, Cherrydale Farms is a leading provider of fundraising programs and productions for schools and non-profit organizations. In business for over 110 years, the Company distributes its products and services through a nationwide network of sales representatives, brochures and catalogues, and a robust online platform. When products are sold by participants, or monies are pledged/donated, the school or organization earns a percentage of the proceeds. The Company serves over 3 million participants annually and has raised over $2 billion for its non-profit partners.

Situation

The Company began facing downward pressure stemming from implementation costs of new technology and other non-recurring expenses. The combination of these one-time costs put the Company in a tight liquidity position that resulted in the sale the Cherrydale chocolate bar business in January 2019. While this initiative helped shape a path to profitability, diminished revenues and compressed margins impacted the Company’s ability to pay outstanding obligations.

Solution

After evaluating alternatives, the Company determined that filing for Chapter 11 protection provided the best opportunity to effectuate a transaction and properly capitalize the business for future growth. SSG was retained to negotiate the stalking horse purchase agreement with Believe, conduct an expedited marketing process, and solicit offers from potential strategic and financial parties. After extensive marketing and discussion with potential interested parties, the stalking horse bid submitted by Believe was determined to be the highest and best price for substantially all of the Company’s assets. SSG’s experience in identifying buyers and running an extremely fast-paced sale process enabled stakeholders to maximize value in an expedited time frame.