To whom it may Concern;
In second quarter 2004 our Company, Ramco Trading Corp.. a Miami based retailer and wholesaler of imported home decorative accessories and household products, faced a serious liquidity crisis and mounting pressure from its senior secured lender. We secured the services of Renaissance Partners L. C., a well respected turnaround and crisis management firm based in Florida, to assess the business and determine the most effective course of action. Ramco had previously transitioned from a predominantly wholesale business to a retail chain of six stores in south and central Florida with revenue of approximately $30 million.
Renaissance aggressively analyzed Ramco’s business from all aspects:
- Financial performance
- Information technology and management reporting
- Real estate and store by store performance
- Buying and merchandising
- Merchandise planning, allocation and distribution
- Distribution and traffic
- Store Operations
- Collateral evaluation – inventory and accounts receivable
- Banking relations.
The Renaissance team led by Thomas H. Hicks. Managing Partner. and Raymond J. Miller and Dena P. McKinley correctly determined that several stores needed to be closed and coordinated liquidator bids covering merchandise, fixtures and equipment and real estate, working in close communication with our Company and its lender. At the same time Renaissance prepared financial plans to determine the viability of continuing operations as a smaller geographically compact business and sought buyers as the existing owners, due to age, were not interested in further investment in and ownership of Ramco. Several prospective buyers emerged but were unable to finance and close an acquisition before the approaching Holiday Season that Renaissance and the lender determined would be the most effective time to conduct a full liquidation. The decision was made to liquidate and again Renaissance obtained liquidator bids, coordinated evaluation of same and guided the Company in selection. During fourth quarter 2004 the Company was successfully liquidated in a Chapter II proceeding and shortly thereafter a liquidating Plan of Reorganization was confirmed. Renaissance also acted as financial adviser to the unsecured creditor’s committee during this process and later served as liquidating trustee. Recovery to unsecured creditor’s exceeded projections set forth at the start of the case.
I want to personally thank Renaissance Partners for its thorough and objective conduct of this case and for the results obtained for all stakeholders. The firm’s professionalism, restructuring and retailing experience. ethics and communication skills enabled the results to exceed our expectations and for the case to be expedited in less than nine months. I would clearly recommend the services of Renaissance Partners to businesses requiring business assessment, turnaround and crisis management services.
Sincerely yours,
Miguel Fleishman
President and Chief Executive Officer
Ramco Trading Corp.