Prestige Industries, LLC
Client Profile
Prestige Industries, LLC (“Prestige” or the “Company”) is a market leading provider of commercial laundry services to the hospitality industry in the greater New York City area. Headquartered in North Bergen, New Jersey, the Company operates two laundry facilities strategically positioned in order to maximize efficiency while providing quality services to its customers. The Company provides a full suite of laundry services to a wide-ranging customer base that includes premium hotel chains and signature boutique hotels.
Situation
Higher than expected costs and completion delays from the construction of a Greenfield facility, coupled with certain operational difficulties suppressed the Company’s profitability for multiple years. The result was an unsustainable capital structure. In order to facilitate the infusion of additional capital, the Company filed for protection under Chapter 11 of the United States Bankruptcy Code in January 2017.
Solution
SSG was retained as the Company’s investment banker and expeditiously conducted a comprehensive marketing process, which resulted in a broad range of interest primarily from strategic parties. Value was maximized through an active 363 auction with multiple rounds of bidding. The winning bidder was Sunrise Capital Partners, a private equity firm that owns another commercial laundry operation in Orlando, Florida.