Craftco Hardwood Floors

Situation

Craftco Hardwood Floors (“Craftco” or “the Company”) manufactured hardwood floors from species that included red and white oak, hickory, walnut, and cherry. It also operated a coating division to prefinish wood products.

Solution

Amherst Partners (“Amherst”) was retained by Craftco to evaluate the viability of its business after its operations had become strained due to unfunded capital expenditures and the loss of a substantial portion of its customer base caused by delivery problems.

Results

Amherst conducted an evaluation of the Company’s market position and operating constraints and recommended an orderly liquidation of the Company.

The Company’s principals avoided further losses and Amherst successfully negotiated the release of their personal guarantees on the company’s bank loans in exchange for a cooperative dissolution of the business.