Buxbaum sets sights on new turnarounds.FRESH from the sale of teen clothier Rampage Clothing Co., turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. specialist Buxbaum Group has set its sights on new targets. The Calabasas-based firm recently plowed plow also plough n. 1. A farm implement consisting of a heavy blade at the end of a beam, usually hitched to a draft team or motor vehicle and used for breaking up soil and cutting furrows in preparation for sowing. 2. a few million dollars into City of Commerce-based knit products company Indosheen Inc. and acquired L.A.-based manufacturer Richter Furniture. Though operating in different sectors, these companies share a common problem: they expanded too fast for their infrastructure to sustain. Speaking generally of companies that Buxbaum looks to invest in, Paul Buxbaum, the firm's chief executive, said, "Most of the deals are companies that either had explosive growth and made mistakes or they had misguidance mis·guide tr.v. mis·guid·ed, mis·guid·ing, mis·guides To lead or guide in the wrong direction; lead astray. mis·guid and some of the management needs to go." At Indosheen, the company grew to $25 million in sales but had the capacity to handle only about $15 million. The Buxbaum Group will help shore up the company's infrastructure, including possibly taking over a cut-and-sew operation in Honduras. In three years, Buxbaum estimates Indosheen will generate $60 million in revenues. David Gren, the company's founder, will stay on as a partner. "They had a nice customer base. They just did not have a good infrastructure and a good production operation. We saw there was opportunity for growth," Buxbaum said. At Richter Furniture, sales totaled about $55 million in 2005, outpacing founder Braden Richter's ability to chum out merchandise. Richter Furniture's customer base includes retail chains Crate & Barrel, Restoration Hardware, Pottery Barn Pottery Barn is an American-based chain of home furnishing stores with stores in the United States and Canada. It is a wholly owned subsidiary of Williams-Sonoma, Inc. History and Williams-Sonoma Home. The Buxbaum Group acquired Richter Furniture's assets after the company filed for bankruptcy last year when its cash flow failed to cover its mounting debt. Richter will remain the creative director of the company, while David Ellis, president of the Buxbaum Group, will serve as the company's chief executive. The Buxbaum Group, a long-term liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy and appraisal expert, has been active of late pouring its resources into underperforming middle-market companies. Depending on the similarity of the targeted companies, Buxbaum expects to be involved in a maximum of five to 10 companies at the same time. "With our expertise and history of understanding the value of assets, we think that we can create more value out of assets through this process," he said. It worked for L.A.-based Rampage. After an overhaul in which Buxbaum improved Rampage's inventory management and accelerated its delivery schedules, the company sold for $45.9 million last year to Iconix Brand Group Iconix Brand Group is a brand management company that licenses brands to retailers and manufacturers primarily in the apparel, footwear, and apparel accessory industries. Its brands are available in such stores as Kohl's, Kmart, Sears, Macy's, Mervyn's and JC Penney. Inc., a New York-based brand manager responsible for Candie's, Bongo and Badgley Mischka Badgley Mischka is an American fashion label designed by Mark Badgley and James Mischka. Badgley & Mischka met at Parsons and found a common vision. The two launched the label Badgley Mischka in 1988, though their bridal business launched in 1993. . Staff reporter Rachel Brown Rachel Brown (born July 2 1980) is an English footballer, currently playing as goalkeeper for Everton Ladies and England Women. After a long spell out with injury, Brown returned to the England team against Sweden in the last group game of Women’s Euro 2005. can be reached at (323) 549-5225, ext. 224, or by e-mail at rbrown@labusinessjournal.com. |
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