SouthStar Capital Funds $14 Million Debtor-in-Possession Facility – Staffing and Logistics Company

The Situation

A leading Tennessee-based warehouse-staffing and logistics company, generating over $60 million in annual revenue, faced operational strain during its reorganization process. As peak season approached, the company needed immediate liquidity to cover payroll and sustain operations for its workforce, which scales to more than 5,000 employees. Their existing DIP lender had reached its maximum exposure, leaving the company without the working capital necessary to maintain momentum and stability through bankruptcy proceedings.  

The Solution

SouthStar Capital stepped in to buy out the existing DIP lender and structure a $14 Million Debtor-in-Possession (DIP) Facility tailored to the company’s complex needs. The facility provided immediate access to capital while ensuring flexibility for future growth. SouthStar’s responsive team worked closely with company leadership and advisors to execute a seamless transition and funding process, avoiding disruptions to payroll or operations.

The Result

With SouthStar’s support, the company stabilized its cash flow, strengthened vendor relationships, and expanded its operational capacity. The additional liquidity allowed the business to confidently pursue larger commercial opportunities and continue growing within the healthcare and senior living construction markets.