BUXBAUM GROUP THE KEY TO SALE OF RAMPAGE - Turnaround specialist created an attractive acquisition candidate
LOS ANGELES, Calif. (10/20/05) --The recent $45.9-million sale of Rampage, a manufacturer and distributor of junior apparel, is the culmination of a two-year long overhaul of the company by Buxbaum Group, the Calabasas, Calif.-based turnaround investor.
"We took a troubled company and put it back on its feet, giving it needed financial and operational assistance,” said David Ellis, president of Buxbaum Group. “Now it’s poised to go to the next level.”
Two years ago, Rampage faced the prospect of filing for Chapter 11 for the second time in six years, even though its product line was as strong as ever. Buxbaum Group identified Rampage’s key problem as an inability to deliver goods on time and manage its inventory.
“Because of its chronic delivery problems,” said Paul Buxbaum, chairman and CEO of Buxbaum Group, “Rampage had been suffering cancellations and chargebacks from its retail customers. This was creating a major drain on the bottom line.”
Buxbaum Group simplified the acquisition process, contracting with overseas suppliers to deliver finished goods on time and according to specs. It also restructured Rampage’s back office operation, cutting down on speculative inventory.
The impact on Rampage’s bottom line was considerable. Although sales volume was pared down, gross profits increased by $3 million.
Buxbaum Group also put together a plan to purchase the creditors’ trust established at the time of the company’s original bankruptcy, allowing Rampage to regain full control of its trademark and licensing revenue and, consequently, aggressively recruit new licensees.
Iconix Brand Group, Rampage’s purchaser, is a publicly traded, New York City-based company whose strategy is to invest in intellectual property and add value to it over time. Its acquisition of Rampage’s brand and licensing agreements will complement its earlier acquisitions of properties like Joe Boxer, Candie’s and Bongo.
Larry Hansel, Rampage’s founder and former chairman, has signed an agreement with Iconix to go forward as a Rampage sports licensee.
About Buxbaum Group - Buxbaum Group has built its reputation for over 30 years as one of the largest liquidators and appraisers of retail and wholesale inventories, as well as machinery and industrial equipment, across North America. While continuing to operate in those areas, the company has shifted its primary focus in recent years to turnaround investing along with specialty financing. Additionally, a subsidiary, Pathway Strategic Partners, provides turnaround, expansion and/or downsizing strategies, in conjunction with other advisory consulting and management services.
Press Contacts: At Buxbaum Group, Paul Buxbaum, (800) 990-6820; at Parness & Associates, Bill Parness or Lisa Kreda, (732) 290-0121.