The decades-old textile company started experiencing financial distress a year prior to the hurricane, primarily due to offshore competition. Local restructuring experts recapitalized the company and commenced a turnaround in early 2016, saving jobs essential to the local community’s economy.
The company was rebounding with upward-trending KPIs prior to the hurricane.
Post-hurricane, management quickly put a plan in place and filed insurance claims. However, the insurer’s continual delays in processing and funding the claims forced the company to raise private capital and compromised the turnaround plan.
Nearly a year after the hurricane, the insurer had only made partial payments on certain claims and $0 on others, and the replacement roof remained incomplete. Ultimately, the company could not fulfill orders and lost its largest clients.
Its owners’ only option was to close the plant, resulting in 150 lost jobs.
