Closet World and its affiliated companies (collectively, “Closet World” or the “Company”) have successful emerged from bankruptcy protection and will pay all unsecured creditors in full. Closet World’s exit from Chapter 11 was facilitated by the purchase and modification of its existing secured debt. Preferred and common shareholders are unimpaired in the transaction. Closet World is a subsidiary of Home Organizers Inc. and an affiliate of CBD Franchising Inc., Home Closets Inc., Closets By Design Inc., Closet World Arizona LLC, Closet Dimensions Inc. and CBD Las Vegas LLC. FocalPoint Securities, LLC (“FocalPoint”) served as exclusive financial advisor to Closet World while Peitzman, Weg & Kempinksy LLP served as bankruptcy counsel and Reeder Lu LLP served as corporate counsel.
Closet World and its affiliates operate a franchise and contracting business that specializes in the custom design, manufacture and installation of closets, garages and other home storage spaces and solutions. The Company is one of the largest custom closet and other home organization system companies in the United States, with several name brands, a nationwide franchise network, and over 450 employees in California. “I would like to thank FocalPoint for their assistance through the process. Our emergence from bankruptcy will allow us to pay our creditors in full and preserves the shareholders’ value in the business” stated Frank Melkonian, CEO and founder of Closet World.
“The exit from bankruptcy is in the best interests of the Company’s creditors and preserves all the stakeholders’ rights, interests and upside.” commented Alexander Stevenson, Managing Director of FocalPoint. FocalPoint ran a comprehensive search for new investors and advised the board of directors of Closet World with regard to various strategic options. FocalPoint also provided testimony in support of the Company’s exit from bankruptcy. Dan Conway, Managing Director of FocalPoint added “We were pleased to be able to assist the Company and its management team in closing this transaction on an expedited timeframe and to contribute to such a positive outcome.”
About Home Organizers, Inc.
Home Organizers, Inc. manufactures home organizing products. The company offers custom closets, garage cabinets, home office units, wall beds, laundry room cabinets, pantries, mirrored doors, and entertainment center products, as well as accessories. It serves customers in California and Las Vegas under the Closet World, Closets by Design and Home Closets brands. CBD Franchising, a subsidiary, is a franchisor of Closets by Design territories in North America, currently managing 27 franchisees in 34 territories across the U.S. and Canada. The company was founded in 1990 and is based in Whittier, California.
About FocalPoint Securities, LLC
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm’s primary focus is on middle-market companies. For more information, please visit www.focalpointllc.com.
Please contact either Dan Conway at 310-405-7010 or Alex Stevenson at 310-405-7080 with any questions about this transaction. Mr. Conway and Mr. Stevenson can also be contacted via email at [email protected] and [email protected], respectively.