In 2024, Animal Supply Company, a national distributor of refrigerated pet products, faced the kind of collapse that sends ripples through every link of the supply chain.
Within months, sales had dropped by half. Distribution centers went dark, liquidity dried up, and the company’s multi-state footprint began to buckle under pressure. Payroll, operations, and vendor relationships strained to hold on.
By the time lenders, including Wells Fargo, assessed the damage, ASC was in default with no viable path to reorganization. A traditional bankruptcy was too slow, too expensive, and too uncertain to save what value remained.
The company needed a way out, and fast. A clean exit that would preserve assets, maintain operations, and wind down responsibly before time ran out.
When the Blueprint Doesn’t Exist
Resolute was called in after an Article 9 had begun. The foreclosure phase was already underway, but what came next had no precedent.
There was no playbook. No model to follow.
So Resolute wrote one.
To stabilize the business and deliver a structured winddown, the team designed a dual agreement strategy that would become the foundation for ASC’s recovery:
- A Transition Services Agreement (TSA) to keep operations running and ensure continuity for the buyer.
- An Assignment for the Benefit of Creditors (ABC) to wind down the corporate entity efficiently and transparently, outside of court.
The two-track plan created a controlled handoff. One that separated operations from liabilities, preserved relationships, and prevented the chaos of an uncontrolled shutdown.
The Transition Services Agreement: Keeping the Lights On
Under the TSA, Resolute’s team became the bridge between ASC and its buyer. They oversaw the transfer of inventory, intellectual property, equipment, and customer relationships, ensuring the business remained operational while ownership transitioned.
Every day mattered. The team managed vendor communications, coordinated employee retention, and provided on-site oversight to protect asset value and keep the distribution flow intact.
There was no disruption in service, no breakdown in operations. Only calm execution under pressure.
The ABC: Closing the Loop
While the TSA kept the company moving, the Assignment for the Benefit of Creditors began behind the scenes. This state-law alternative to bankruptcy allowed Resolute to close the corporate shell with structure and transparency.
The team managed creditor communications, handled legal notices and claims, facilitated equipment returns, and oversaw facility closures. Even in the absence of distributable funds, the winddown was carried out with precision and full compliance.
What could have been a tangled court process became an orderly, efficient conclusion.
A Controlled Landing
By the end, ASC’s assets were transferred smoothly to the new operator. Key employees stayed in place. Creditors were managed professionally. And legacy liabilities were resolved outside of court.
A potential collapse turned into a clean transition. A recovery that preserved value, prevented disruption, and protected all sides from deeper losses.
Why We Do The Hard Things
The ASC case demanded creativity, coordination, and the confidence to build a solution from the ground up. Resolute’s team didn’t just manage a winddown, they engineered an outcome that proved what’s possible when experience meets ingenuity.
Every case tells a story. This is another one of ours. No blueprint. No Problem. We do things because they are hard.