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Well, this issue brings some good news and some bad news.
The bad news concerns the lousy weather we've had in Denver
this Spring, the too early departure of the Avalanche from
the Stanley Cup and the crumbling bats of the our Blake Street
Bombers. Adding to this tale of woe, John broke his foot at
Crested Butte while pretending he was some teenage shredder
on his snowboard. The good news is that we completed another
promising investment.
In our second investment, the fund and related entities invested
$10 million alongside existing management to purchase the
department and specialty store footwear licensing division
of JBI, Inc. (We have enclosed a copy of the tombstone.) Shoe
Corporation of America, as the company is now known, manages
the footwear business in about a dozen department and specialty
store chains. The company operates in over 450 locations nationwide
and generated about $185 million in sales last year. Given
the compelling economics of licensing to certain types of
department and specialty stores, we and management are excited
by SCOA's growth prospects.
With Trussway Ltd., our first investment, we have stepped
up our acquisition efforts and look forward to expanding upon
the company's leadership position in the industry. We are
looking, specifically, to add to our presence in the single
family market -- so let us know if you hear of any well-managed
truss companies available in the mid-atlantic, southeast and
southern USA.
Other situations that we are looking at now include a growth
equity investment in a closely held performance ski wear business,
a management buyout of a closely held costume jewelry components
manufacturer, a growth equity investment in a family owned
transportation company and a recapitalization of a closely
held charter airline. Although we have succeeded in investing
in shelter and clothing we are still searching for a food
investment to complete the first level of Maslow's hierarchy
of needs.
We encourage you to call us with interesting investment opportunities
within the closely held and family owned business market.
We look for transactions where we can invest $2 million to
$10 million in equity capital in established companies with
$25 million or more in revenue. Should you call, we guarantee
you a thoughtful and timely response.
Best regards,
Tad Kelly, John Flanigan, Blake Morris & Lee Ann Moore
511
Sixteenth Street, Suite 600 Denver, CO 80202
Telephone: (303) 571-0100 Facsimile: (303) 571-0114
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