In March 2009, McManigle was engaged as Chief Restructuring Officer and became a Director of Jane & Company, Inc. the parent of Jane & Company, LLC (“Jane”).
Jane is an established national cosmetics provider whose quality cosmetic lines fill a niche between value and more expensive cosmetic brands. It had annual revenues of approximately $25 million, but was in financial and operational distress due to significant cash liquidity issues arising from the 2008 economic crisis, actions by retailers trying to curb their inventory and questionable management practices. He assumed control of the business as he prepared it for a Chapter 11 filing in Wilmington Delaware.
During this engagement, Drew successfully revised an existing operational budget and obtained a debtor-in-possession financing commitment from its senior secured lender that provided funds to continue operating during the bankruptcy proceeding. Significant milestones in this highly challenging case were: seamlessly maintaining the debtor’s business and customer base made up of national retailers such as Wal-Mart and Rite-Aid. Negotiating and gaining approval of an arms-length asset purchase agreement with a “stalking horse bidder”. And, acting as the de-facto investment banker leading a vibrant 11 USC 363 asset sale process that reached over 30 prospective bidders. These tenacious efforts resulted in a successful asset sale valued in the $7.3 million range that was approved just 53 days from the date of the original petition. Post closing, Jane continued its on-going operations under new owners.
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