Frank Parsons, Inc.
For more than 70 years, Frank Parsons, Inc. (“Frank Parsons” or the “Company”) has been one of the leading paper and business supplies distributors in the Baltimore-Washington D.C. metro area. With many customer relationships spanning more than 25 years, Frank Parsons is a one-stop provider for its diverse customer base through its product and service offering, which includes more than 40,000 products and a multitude of services designed to help customers manage information streams and reduce costs across the enterprise.
Management recognized that the Company’s fine paper division, its largest business unit, was in a difficult, shrinking market, and chose to divest it to focus resources on the business products division, which had historically experienced steady growth and profitability. However, due to a combination of macroeconomic factors, capital constraints, and the disruption and impact of the sale of the fine paper division, revenue from business products was less than projected, causing a reduction in availability from the Company’s senior lender and decreasing the Company’s cash position. After exploring several strategic alternatives, Frank Parsons filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Maryland in January 2011.
Frank Parsons engaged SSG to explore a sale of substantially all of the Company’s assets. SSG marketed the Company to a wide range of strategic and financial parties, ultimately receiving multiple offers for the Company, and initiated and led the sale to The Supply Room Companies, Inc. under Section 363 of the U.S. Bankruptcy Code. SSG’s experience identifying buyers and running the expedited sale process enabled the Company and its legacy to continue as a going concern while preserving jobs for the majority of Frank Parsons’ employees. The sale was closed in May 2011.