Case Study

Independent Director of Pattern Brands

We acted as Independent Director to Pattern Brands in order to facilitate a complex restructuring of the company’s balance sheet on a consensual basis.

Company

Pattern Brands

Location

United States

Industry

Consumer / D2C

Case Study: Serving as Independent Director of Pattern Brands

Independent Director Pattern Brands

The Situation

Pattern Brands is a consolidator of popular home products brands sold online and/or through various retail channels to consumers, including Miracle Brand sheets and bedding. Our team was appointed as the Independent Director of the company to facilitate a balance sheet restructuring.

Strategy & Execution

Over a prolonged period, relations between the company’s primary lenders and equity holders had deteriorated as a result of poor financial performance. Ultimately, the company’s lenders exercised their proxy rights to “flip the board,” upon which we were appointed. The mandate involved extensive negotiations with the company’s capital providers to implement a consensual restructuring whereby the lenders became majority owners, with participation from both legacy equity and management. Upon completion, new and incremental capital was injected into the business.

Outcome

The stabilization of the balance sheet, together with the injection of incremental capital, led to a marked and rapid turnaround for the company. Our personnel remain on the board of the company, and the new shareholders are contemplating a future exit at a significantly improved valuation.