Gladstone Food Products Receivership Case Study with NMBL Strategies CEO Eric Moraczewski

Описание: The speaker, Eric Moraczewski, CEO of NMBL Strategies and the court-appointed receiver for Gladstone Food Products, discusses the successful receivership and sale of the company, which is best known for its La Tiara brand of taco shells.

Key points from the video:

The Business: Gladstone Food Products operated in the Kansas City area for over 50 years, primarily selling taco shells in the Midwest, Southeast, and Texas. The company was generating about $6 million annually before the receivership but encountered production and sales issues that led to cash flow problems, a new facility build-out, and ultimately, a shutdown before the receivership began.

The Creditor: Commerce Bank, the secured creditor, was owed approximately $5–6 million due to loans for the new facility expansion and sought to get paid back.

The Receivership: The bank opted for a receivership to ensure the best return and an efficient process. The business had already shut down. An initial offer of about $6 million was on the table, but the bank was skeptical about the deal closing quickly.

The Process: The receiver began marketing the business while simultaneously gathering information. The family that had owned the business for 50 years was helpful with tours and information. The first priority was to rapidly create a marketing package to reach other potential buyers.

Sale Timeline: The process started in March and the sale closed by the end of May, with the complete closeout of the receivership in August, totaling a five-month process.

Assessment: The receiver assessed the value of the facilities, brand, and equipment to determine whether to sell the company as a "going entity" (or going concern), despite the closure, or to liquidate it.

Buyer Interest: Interest in the business came from three main areas: Kansas City residents with an emotional connection to the brand, groups in the food space, and people engaged by the massive group of supportive Facebook followers.

The Buyer: General Mills ultimately purchased the company. General Mills reached out within about an hour of the receiver posting the marketing package on LinkedIn. The company was praised for following the laid-out timelines and closing quickly.

The Outcome: The sale was highly successful, paying off all secured creditors, all unsecured creditors, and returning money to the equity holders. The sale was seen as a victory for the claimants, owners, and the Gladstone community, as it brought jobs back.

Family and Product: The family that owned the business was engaged to stay on and ensure the taco shells would be produced in the same way they had been for the last 50 years.

Support: The receiver relied on Eric Peterson and Spencer Feain for their experience and knowledge to quickly address questions from numerous attorneys and parties.

Success of the Case: The speaker notes that this case is likely the most successful receivership they will ever operate.