The Innovative Companies, LLC
The Innovative Companies, LLC (‘Innovative’ or the ‘Company’) is one of the leading global suppliers of natural stone and architectural surfaces with the broadest selection of stone products and related services. Headquartered in the Northeast, the Company operates sourcing offices, manufacturing facilities, and warehouses throughout the United States and internationally. The Company has distinct business units specializing in commercial, residential, stone fabrication, distribution, and furnish & install work. These business units enable Innovative to provide services in the fabrication and installation of man-made and natural stone products used for dimensional stone, hard surface flooring and residential countertops. In addition to their products and services, the Company holds a reputation for having an impressive client roster which includes completed and ongoing projects for major hotels and casinos, professional sports stadiums, prominent national retailers, condominiums and restaurants, among others.
After years of consistent growth and profitability, the Company’s financial performance was negatively impacted by the recent economic downturn. Factors such as high fuel costs, reduced margins on sales due to a weak dollar and rising fuel prices, created an unanticipated strain on Innovative’s business model. The confluence of these factors created a situation where consumers, retailers and developers alike were reticent to invest in capital intensive projects. As a result, the Company experienced a significant drop in volume in its Commercial and Residential units, which constrained liquidity and fatigued its lender. These factors led the Company to file for protection under Chapter 11 of the U.S. Bankruptcy Code in the Eastern District of New York on April 17, 2009.
SSG advised Innovative on the sale of secured debt and the subsequent sale of certain assets to an affiliate of Woodside Capital Partners under Section 363 of the Bankruptcy Code. Woodside Capital Partners is focused on investing in middle market companies that can benefit from strategic redirection, operational enhancements or balance sheet realignments. SSG’s experience identifying alternative solutions and buyers and in facilitating and navigating the sale of the senior debt and subsequent 363 sale, enabled all key stakeholders to maximize recoveries while preserving the jobs of the majority of Innovative’s employees.