A minority-owned CPG business that provides premium hair and skin care products to the multi-cultural consumer was facing multiple challenges. Launched in the founders’ garage in 2014, the company grew net sales to $20 million in 2019. Unfavorable sole supplier pricing, unmanaged cash volatility regarding promotional spend, and increasing working capital needs led to borrowing base over-advances, reduced line availability, significant delinquent trade payables, and a large balance owing to its major distributor for past promotional activity.
Gabriel Holdings is the largest packaged store in the San Antonio area. The Company filed for Chapter 11 Bankruptcy in the Western District of Texas in December 2019. A Harney professional was appointed as Chief Restructuring Officer in March 2020 to get the company through a success reorganization and sale process.