Imperial Home Decor Group, Inc.

Client Profile
Imperial Home Decor Group, Inc. (“Imperial” or the “Company”), is one of the world’s largest designers, manufacturers and distributors of residential wallcoverings, including sidewalls, borders and other niche-oriented product lines. The Company sells its products primarily through home centers, mass retailers and independent distributors in the United States and Canada.
Situation
IHDG had been adversely impacted over the last decade by the significant down cycle of the global wallcoverings market, the key driver of which has been the substitution of paint for wallcoverings. Despite operational improvements, IHDG had difficulty maintaining consistent profitability amidst its deteriorating base of revenue.
Solution
The immediate sale of the Company was required to provide liquidity for the stakeholders. The balance sheet and corporate structure required that the sale be affected through concurrent insolvency proceedings in both the U.S. and Canada (the manufacturing facility was located in Quebec and part of a Canadian subsidiary). Blue Mountain Wallcoverings, which served as the stalking horse bidder in the U.S. Section 363 auction, ultimately purchased substantially all of IHDG’s assets in the U.S. and Canada.