TAC GROUP, INC. D/B/A FRUGAL FANNIES

Case Highlights

• Hired on two separate occasions
• Initially to renegotiate bank agreements, develop business plans and deal with unfavorable store leases
• Later returned to coordinate Chapter 11 filing, resulting in full payment to secured lender, distribution to unsecured creditors and continued operation of the flagship store

Case Narrative

TAC Group operated a chain of women’s-apparel retail stores based in the northeast with annual sales at its peak in excess of $50 million.

DSI twice assisted the company in implementing business plans that responded to financial impact of regional declines in comparable store sales.  Specific areas addressed in the business plans included a restructuring of a bank loan, finding replacement financing, a change in capital structure between existing shareholders, evaluation of the profitability of individual store locations and a reduction in corporate overhead expenses.  Later, DSI coordinated a Chapter 11 filing that resulted in the liquidation of underperforming stores, allowing the secured lender to be paid in full and generating funds for distribution to unsecured creditors.

Frugal Fannies continues to operate today at its original location in the Boston area, operated by the original owner.