restructuring Advisor
Project Strondhold
About the Company
The Company is one of the largest domestic manufacturers of security products in the United States. Headquartered in Utah, the Company serves a national dealer network and major retail accounts across entry-level, mid-range, and high-end security categories. The Company was acquired by a private equity sponsor in late 2021, with the lender providing additional capital under a senior credit facility.
Project Stronghold
Exclusive Restructuring Advisor
Situation
Following peak revenue in 2021, the Company experienced a sustained multi-year decline driven by COVID-era demand normalization, back-to-back price increases that elevated products above market, brand damage from a high-profile “cancel event,” and the loss of a large national account customer, creating a $14MM revenue gap in 2026. The Company’s fixed cost structure created significant EBITDA pressure. The Lender, as Collateral Agent, retained Counsel and engaged G2 Capital Advisors to conduct an independent rapid business assessment.
Engagement
Engaged by Counsel on behalf of the Lender, G2 conducted an initial assessment over approximately three weeks. G2’s assessment focused on distinguishing broader market conditions from company-specific structural risks, particularly given the Lender’s underwriting of the transaction and potential path to eventual ownership.
Scope included: evaluating the 13-week cash flow forecast and liquidity; sensitizing the 2026 budget; performing a site visit and operational assessment of the manufacturing facility; mapping the U.S. home and gun safe competitive landscape; reviewing management capabilities; and delivering a structured turnaround roadmap. G2 also established a weekly liquidity review cadence with the Lender and introduced variance-to-forecast tracking.
Outcome
G2’s assessment concluded that the Company’s liquidity was constrained and would continue falling during seasonal trough periods and would likely need incremental support. Although the business faced financial and market headwinds, the Company retained significant brand equity and a market position capable of supporting a turnaround. G2 identified several critical risks, including management gaps, safety and manufacturing deficiencies, an obsolete ERP system, and fixed-cost margin pressure. Based on these findings, G2 delivered a prioritized set of recommendations and a comprehensive turnaround roadmap to the Lenders. G2 has since remained engaged as an ongoing advisor, monitoring weekly liquidity, evaluating operating performance, and providing strategic insights to support the lenders as they assess restructuring and other strategic alternatives.
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