Craftex Mills, Inc.
Craftex Mills, Inc. (“Craftex” or the “Company”) is a leading designer and weaver of decorative and performance upholstery fabrics for the residential, contract, and outdoor furnishings markets as well as the hospitality, healthcare, and transportation industries. As a result of the Company’s rich history specializing in a variety of end markets for decorative fabrics, Craftex maintains an unrivaled suite of fabric designs and remains positioned to serve an unparalleled variety of design specifications. The Company is headquartered in Blue Bell, Pa and maintains a 134,000 square foot weaving facility in Auburn, PA.
The economic slowdown, rising oil prices, and slumping housing market, starting in late 2006, created a challenging environment for the broad woven fabrics industry. In addition, the increase of international low cost fabric manufacturers negatively affected the market for Craftex’s products as many of its customers began to outsource their fabric needs to China, India, Turkey and countries with low cost weaving operations. As a result of these dynamics, Craftex experienced industry-wide core end market erosion and higher raw material costs.
SSG was hired as exclusive investment banker to advise the Company regarding strategic alternatives, including the sale of its equity and/or debt. Professionals at SSG marketed the Company to a wide range of strategic and financial parties, ultimately receiving multiple offers for the Company. After careful consideration regarding Craftex’s working capital needs and stakeholder objectives, SSG advised management to effectuate a UCC Article 9 sale with Victor Innovatex, Inc.