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Auction of Assets for Motherwear, Inc.
Auction of Assets for Motherwear, Inc.
Published 10-08-03
Submitted by Meadowbrook Lane Capital
The company widely recognized as the original creator of nursing wear for breastfeeding moms is under financial siege. Motherwear, a catalog/web company in Northampton, Massachusetts, is the latest victim of the increased costs of small-scale domestic production and increased competition in the global marketplace. For the past 21 years the company has been a leader in socially responsible business activities including the founding of a local socially responsible business group, open book management, six percent of profits to non profit organizations, social and environmental audits as well as providing free breastfeeding materials to new moms.
Meadowbrook Lane Capital of Springfield, Massachusetts, described as a 'socially responsible' investment bank during its attempt to take Ben & Jerry's Ice Cream private, has been retained by Motherwear to conduct an 'open auction' of the assets of the company. "Motherwear has a marketers dream customer base - over one million mothers and expectant mothers between the ages of twenty-five and forty with a social conscience and close to ten thousand health professionals. Combining their innovative business techniques, authentic branding and leadership role in the socially responsible business community, the company will be attractive to a wide range of suitors," according to Joe Sibilia, President of Meadowbrook Lane.
Pregnant and nursing mothers represent one of the most attractive consumer profiles in the world. The company has a comprehensive database of 1.3 million prospects and customers. The database contains names, addresses, email addresses, baby birth dates or due dates, and lifetime sales and returns history. Last year alone, Motherwear provided breastfeeding clothing and products to over 50,000 customers. Additionally, the names and addresses of over 9,500 professionals who have distributed the company's catalogs and breastfeeding guides over the past seven years are included in the database. This list includes the total number of catalogs and guides they have distributed and the distributor's profession. These include OB/GYN doctors, family practice MDs, childbirth educators, midwives, lactation consultants and La Leche League Leaders.
The streamlined sales process effectively handles 70% of sales through the web site, more than double the industry average. Additionally, the company enjoys dedicated call and fulfillment centers. Management has been in place for 17 years from incubation through growth to today and is open to the prospect of employment contracts.
Meadowbrook Lane has two weeks to effectuate a transaction. A Massachusetts bank is the secured creditor and has been sympathetic to the challenges facing the company. "They have been incredibly cooperative and helpful during this trying time," said Jody Wright, President of Motherwear.
Confidentiality agreements can be obtained from Denise at denise.labelle@meadowbrooklane.com followed by a more comprehensive analysis of the company and detailed financial information from Heather at hmcgowan@meadowbrooklane.com. Cursory information on the company can be found at www.motherwear.com. Bids will be accepted up to October 17, 2003.
