Case Study:
Austin Baccus Company
Family Business Sold After Dispute with Multinational Technology Company
Austin Baccus Company (ABC) was the exclusive online domestic retailer of refurbished Dyson vacuum cleaners through its warehouse showroom and multiple online sales channels, including eBay and Amazon, as well as its own website; however, a contact dispute whereby Dyson was alleged to have improperly competed with ABC and caused the failure of the company.
The Solution
Company filed a voluntary receivership in State District Court so a neutral third party could lead the liquidation of one division and the going-concern sale of another division (since ownership would be a potential buyer in the sale of the going-concern division).
Harney's Greg Milligan was appointed as State Court Receiver.
After an assessment of the operations of both divisions, the decision was made to liquidate the online/warehouse business and sell the Austin-based retain showroom and repair facility as a going concern.
The Results
All secured creditors were paid in full.
A settlement was negotiated with Dyson whereby it would limit its receivership dividend to 20% so that all other third-party creditors could receive disproportionally more (65%) on their similarly situated claims.
The Austin-based showroom and repair facility continued as a going concern.
Services & Roles
Fiduciary Services
State Court Receiver
Interim Management
Financial Advisory
Assessment
Liquidation/Wind Down
*Some engagements may have been performed by team prior to joining Harney Partners.
