CLIENT TRANSACTIONS

RAD Group

Company

Headquartered in Hauppauge, New York, The Robert Allen Duralee Group (“RAD Group” or the “Company”) is the second largest supplier of decorative fabrics and furniture to the design industry in the United States. The Company designs, manufactures and sells decorative fabrics, wall coverings, trimmings, upholstered furniture, drapery hardware and accessories for both residential and commercial applications.

Situation

RAD Group was created by the 2017 merger of Duralee Fabrics and The Robert Allen Group to achieve economies of scale and enhance competitive advantage. The Company experienced post-merger challenges including systems integration issues which negatively affected sales and failed to achieve the targeted cost reduction potential. RAD Group also suffered from a fundamental shift in demand in the custom home furnishings market which reduced sales industry-wide. Faced with a significant drop in revenue and post-merger challenges, RAD Group filed for Chapter 11 bankruptcy protection in February 2019 in the Eastern District of New York.

Solution

SSG was retained by the RAD Group to conduct a comprehensive marketing process and solicit offers from strategic and financial buyers. The stalking horse bid submitted by RADG Holdings, LLC was determined to be the highest and best price for substantially all of the Company’s assets. SSG’s industry knowledge and experience running efficient Chapter 11 sale processes enabled the Company to maximize the value of its assets and emerge from bankruptcy promptly as a going-concern.