Prestige Sells Assets to Sunrise Capital
SSG Capital Advisors LLC acted as the investment banker to Prestige Industries LLC, North Bergen, NJ, in the sale of substantially all of its assets to an affiliate of Sunrise Capital Partners. The sale was effectuated through a Chapter 11, Section 363, process in the U.S. Bankruptcy Court for the District of Delaware. The transaction closed in May 2017, according to a news release.
Prestige provides commercial laundry services to the hospitality industry in greater New York City. The company operates two laundries and provides a full suite of laundry services to a wide-ranging customer base that includes premium hotel chains and signature boutique hotels.
Higher than expected costs and completion delays from the construction of a greenfield facility, coupled with certain operational difficulties, suppressed the company’s profitability for multiple years. The result was an unsustainable capital structure. In order to facilitate the infusion of additional capital, the company filed for protection under Chapter 11 of the United States Bankruptcy Code in January 2017.
SSG was retained as the company's investment banker and it conducted a comprehensive marketing process, which resulted in a broad range of interest primarily from strategic parties. SSG maximized the company’s value through an active 363 auction with multiple rounds of bidding. The winning bidder was an affiliate of Sunrise, a private-equity firm that owns another commercial laundry operation in Orlando, FL.
Sunrise is a New York-based private equity group actively focused on investments in small and midsize businesses in the technology, healthcare and business services industries. To read the full release, click here.