CHADWICKS

Case Highlights

• Liquidated the secured lender’s collateral upon default by the borrower
• Sale of extensive catalog inventory

Case Narrative

Chadwicks was a renowned national catalog purveyor of women’s clothing and accessories.  Headquartered in Boston, Massachusetts, the business also included inventory warehousing and fulfillment operations.  Following a default under its loan agreements, and at the insistence of its secured lender, the business was placed into a Federal Receivership in the District of Arizona by reason of language in the loan documentation.  DSI was selected to be the Federal Equity Receiver.  In this Receivership, DSI successfully was able to liquidate all of the inventory of the company, with the proceeds from these sales offering significant repayment to the secured lender.  This sale of inventory was managed entirely under the auspices of the Receivership.  During the course of the proceedings, DSI was required to deal with a number of claims placed against the inventory by the original suppliers of these goods, a worldwide base of garment manufacturers and suppliers.