Jagged Peak Inc., a major U.S. distributor for the popular Nespresso brand, keeps the coffee flowing following its emergence from bankruptcy.
Jagged Peak’s national fulfillment business and cutting edge order management platform were sold in an accelerated process led by Force 10 Partners, a premier operational and financial restructuring firm, with the firm’s Jeremy Rosenthal serving as Jagged Peak’s chief restructuring officer and Nicholas Rubin leading the firm’s financial advisory services. Mr. Rosenthal and Mr. Rubin guided the company through the sale and to a confirmed plan that implemented an intricate settlement with Jagged Peak’s international parent, its sister-company TradeGlobal LLC, the Unsecured Creditors Committee and the estates’ largest creditor.
“Force 10 created an adept strategy for Jagged Peak to protect and preserve the value of its assets, achieve top dollar in tight time frame and deliver a beyond expectations recovery for all creditors,” said Michael Mercier, former CEO of Jagged Peak. “Amazing is an understatement and I can’t thank them enough.”
The Florida-based e-commerce and fulfillment company entered bankruptcy in September 2019 to avoid a devastating shutdown for its customers shortly before the peak holiday sales season. “A shutdown would have proven catastrophic for many of our customers. There was only a short window for a sale of Jagged Peak before the critical ‘black Friday’ holiday sales season,” said Rosenthal.
“Jagged Peak provided critical infrastructure for Nespresso and many other important household brands. There was a lot to lose from the potential liquidation of Jagged Peak,” said Rosenthal. “Fortunately, we were able to bring Jagged Peak’s customers and its buyer together to preserve this vital business and all of the jobs both at Jagged Peak and their customers that would have been jeopardized if Jagged Peak was liquidated.”
Jagged Peak and its assets were sold to ID Logistics US Inc. for approximately $15 million in a stalking horse transaction that preserved the company’s valuable operations and technology platform for Nespresso and Jagged Peak’s other customers.
Mercier lauded Force 10 for avoiding a seemingly inevitable liquidation, saving hundreds of jobs and preventing disruption to customers. “Force 10 drove our entire process forward and that process delivered,” Mercier continued. “Force 10 was instrumental throughout each phase of our plan and continually strove to achieve results that recognized the true value of the company.”
Force Ten Partners, LLC, is an advisory firm with deep domain knowledge in financial and operational corporate restructuring, valuation, forensic accounting, and complex litigation support. Force 10 serves middle-market companies as well as their creditors, stakeholders, and professionals by providing turnaround-management services (CRO), financial advisory services, expert witness support, and investment banking and M&A advisory services.