International Garment Processors

Client

International Garment Processors (IGP), Inc, is a large denim finishing processor for major jean retailers. The Company provides specialty finishing for denim garments through two processing plants in Mexico with an operating capacity of 225,000 garments per week, 2,000 employees and annual revenues of approximately $35 million.

Challenge

The Company faced a wide range of issues, including increased competition from Asia and South America, resulting in cost pressure, shift in customer base to the use of full package suppliers, seasonal customer demand and heavy debt load inherited from the bankruptcy of a partner with a 50% interest. The Company had three closed manufacturing facilities and corporate operations in El Paso requiring varying degrees of cash to maintain and operate. The Company was also operating under a forbearance agreement with its primary lender.

Solution

Operating as CRO, Bridge worked with management to: develop and implement cost reductions, improve communication within the organization, manage liquidity issues, assist in increased focus on operating measures, obtain new business and wind down and sell the El Paso operations and real estate. Bridge assisted in developing a strategy to seek new bank debt or other potential investors.

Results

Operations have been stabilized and the company is now positioned to take advantage of increased demand for high end specialty finishes. The company is still operating under a forbearance agreement. However, new bank debt is being sought and opportunities to partner with others is under study.