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Globe Building Materials

Globe Building Materials, Inc. was a premier manufacturer of asphalt and laminated shingles for 67 years. In early 2000, the company became bogged down by cash flow problems, caused by a strike and additional debt that was acquired for expansion purposes. By January of 2001, Globe filed for Chapter 11 bankruptcy. In April 2001, they filed Chapter 7. The lender was left with a large inventory of finished goods and a sizable portfolio of receivables.

ARG was retained by the lender to maximize asset recovery's. This was somewhat of a daunting task since the Globe product carried a warranty. Due to this fact, it was felt by some within the industry that it would be extremely difficult, if not impossible to achieve an acceptable return. However, ARG was up to the task. ARG carefully planned and implemented a strategic market-specific program. ARG developed a new customer base by selling directly to builders, developers and homeowners through a public wholesale/retail sale.

ARG had to move swiftly and decisively to get the sales up and running. Within a two week period, ARG took over the project as the "Responsible Party" and put together the appropriate exit strategy in a timely fashion. ARG called upon its experienced manufacturing consultants who managed multiple Globe Building Materials manufacturing sites.

Sales Plan:
ARG took over all facilities and the manufacturing locations were transformed into warehouse showrooms.

ARG consultants re-merchandised over 750,000 bundles of shingles.

While both showrooms were being created, numerous other details needed to be attended to. ARG' consultants put together an extensive system to manage and track the sales of the inventory, as well as preparing a detailed expense and cost analysis.

To make purchasing the product easier for the public, ARG arranged to accept major credit cards through its own specialized account. Even though the credit card transactions are through an ARG system, ARG arranged to have all of the deposits go directly into the lenders designated bank account, not its own. This created an easier way to track the sales for the lender.

Marketing and advertising were a crucial part of the success of this sale. Since the manufacturing plants were located in several major metropolitan markets, an extensive newspaper, signage and radio advertising campaign was implemented. ARG's USP (Unique Selling Proposition) gave the customers a reason to come and buy shingles for their houses and home improvement projects.

ARGí overall management commitment is the difference between a successful project and an unsuccessful one. Our attention to detail is unsurpassed.

During the course of the Globe sale, ARG realized that the lender also had a tremendous exposure with their accounts receivable portfolio. ARG implemented a highly successful program to collect the accounts receivable portfolio for the lender, which at the same time allowed for overall increased sales of merchandise. ARG was able to improve sales and reduce the expenses and timeframe ordinarily associated with accounts receivable collection.

ARG' staff prides itself on thinking outside of the box and on its ability to accurately budget and control expenses.

The Globe Building Materials project was a tremendous success, surpassing the expectations of the lender. ARG produced a return in excess of our initial sales projections and came in under budget.

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