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In This Issue
Buxbaum Group Dresses Rampage for Success
Two years ago, Rampage, a manufacturer and distributor of junior apparel, faced the prospect of filing for Chapter 11 for a second time in six years. It wasn't the fault of the company's product line. Rampage's chairman, Larry Hansel, was considered a leader in design, his fashions carried by virtually all major department stores. In fact, the Rampage brand was so compelling that Charlotte Russe was successfully operat­ing dozens of licensed stores under the Rampage logo.
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Paul Buxbaum
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Brand has been enhanced through billboards in L.A. and N.Y.
Nonetheless, Rampage was in arrears to its vendors and out of formula with its lender. Unless something was done—and quickly—the company would reach the point of no return. Fortunately, Hansel had a relationship with Buxbaum Group, which had helped Rampage emerge from its earlier Chapter 11 filing. Convinced that the company had as big an upside as ever, Buxbaum Group negotiated a deal that saw principals Paul Buxbaum and David Ellis become stockholders in
Assessing Food Inventories Can Give Lenders Indigestion

STRATEGY ONE
Published by Buxbaum Group
26610 Agoura Road
Suite 120
Calabasas, CA 91302
(800) 990-6820
www.buxbaumgroup.com

 

By David Ellis, President
Lenders who think it's as easy to evaluate one company's inventory as another's probably haven't had the experience of liquidating a food company.
Simply stated, a food inventory is a totally different animal from any other type of consumer product you might be financing. Accordingly, when trying to place a liquidation value on inventories being used to secure loans, those directing this process must be fully versed in the factors that are unique to food manufacturing and distribution.
To begin with, food
inventories don't
turn a dozen times
a year like those in David Ellis
other manufacturing
sectors. Agricultural products are harvested
only once a year, then gradually sold down
over the ensuing 12 months. This annual
cycle can translate into a long and potentially
expensive carrying cost, and those expenses
can be even greater in the case of goods that
require refrigeration or additional processing
and packaging.           click here to continue Page 2
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