Luxury retail candy brand with boutiques, wholesale, and e-commerce
Expertise
As inancial advisor and investment banker, Force 10 guided this chain retailer of luxury candies to a successful Plan of Reorganization. This included securing a Debtor-in-Possession (DIP) loan and a stalking horse bid. Additionally, Force 10 conducted a Section 363 process and successfully confirmed a Plan of Reorganization for this luxury candy brand. Throughout the process, Force 10 skillfully navigated a complex capital structure and balanced the diverse priorities of various stakeholders.
When Sugarfina engaged Force 10 in May 2019, the company pursued growth capital and asked us to advise on their solicitation efforts and other strategic alternatives. Through these efforts, Force 10 became familiar with the company’s financial condition and the hurdles they faced as they attempted to complete the equity raise. Force 10 regularly advised Sugarfina’s board throughout the Series C round and became increasingly involved in cash management and negotiations with Sugarfina’s secured creditors. These negotiations resulted in the issuance of Secured Convertible Notes and an extension of a facility from Goldman Sachs and the first lien facility.
Once it became apparent that the company should pursue a Chapter 11 to facilitate its reorganization, Force 10 was tasked with sourcing debtor-in-possession financing and a stalking-horse bid. During Chapter 11, Force 10 served as financial advisor and investment banker. Force 10 helped navigate Sugarfina through a successful Section 363 sale, completed within eight weeks of its bankruptcy filing, and confirmed a complex Plan of Reorganization designed to preserve NOLs and maintain optionality for the reorganized Debtor.
