M&A Advisory

EBO Following a Voluntary Bankruptcy to Revive the Business

Result

  • Prevented the disappearance of a traditional textile processing technique (Chichibu Chijimi) in its production area!
  • Recovered the business by integrating support from the chamber of commerce and industry and local financial institutions!
  • Supported and maintained the traditional local industry!

Company TypeF

  • Type of Business: Textile Dyeing and Processing
  • Business Scale: JPY 50M~
  • Business Area: Kanto Region
  • Number of Employees: 12

Status of Business

  • The textile industry has spread overseas and orders gradually decreased over the years.
  • Following the Tohoku Earthquake, all orders were suspended and Company F applied for a voluntary bankruptcy
  • Local business stopped manufacturing due to the bankruptcy of Company F and the traditional Chichibu Chijimi was no longer produced.
  • Cooperated with Chichibu's chamber of commerce and industry to organize a scheme to revive the company and make financial arrangements.

Managerial Challenges

  • Difficulty finding a sponsor after a bankruptcy
  • Creating a realistic business plan to receive approval from the bankruptcy estate
  • Increased risk of former business partners switching to competitors as time passes after the suspension of business
  • Immediate action was required to restructure the business and restart the business with obligors

Contents of Support
(Market Research, General Consultation)

  • Negotiated with former employees and regular customers and received support to establish a receiving company
  • Made financial arrangements to purchase production facilities back from the bankruptcy estate
  • Negotiated with the bankruptcy trustee to organized production facility purchase and releasing the right of exclusion
  • Formulated a revitalization plan and borrowed working capital from the local financial institution and DBJ
  • Succeeded in business revitalization through negotiations with the vendor and clients

Optius's Plus One!Local business revitalization through the use of the chamber of commerce and industry and local financial institutions

  • Succeeded in acquisition with the support of employees and business partner to save the traditional Chichibu Chijimi product and continue to contribute to the local economy

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