Supply Source Enterprises, Inc. and its debtor affiliates operate in the post-confirmation phase of a Chapter 11 liquidation, with a combined joint plan of liquidation confirmed on October 22, 2024 and reported effective on November 26, 2024. The case is now administered through a liquidation trust overseen by Foresight Restructuring LLC as Liquidation Trustee.
The Debtors—a Guilford, Connecticut distributor of personal protective equipment and janitorial, safety, and sanitation products sold under the Safety Zone and Impact Products brands—filed their Voluntary PetitionDkt. 1 on May 21, 2024 after a sharp post-pandemic reversal. During 2020, adjusted EBITDA had risen roughly 300% to approximately $93 million, and management, relying on an industry study projecting sustained COVID-era demand through 2024, accumulated inventory at elevated prices. Demand normalized by the end of 2021, leaving excess and partly unsellable stock compounded by inventory-control weaknesses traceable to a 2020 acquisition and a troubled warehouse relocation from Toledo, Ohio to Richmond, Indiana. Revenue fell 26% in 2023 alongside negative EBITDA of roughly $13 million, and the prepetition asset-based lenders exercised cash dominion in February 2024, cutting access to working capital and straining vendor relationships. At filing the Debtors carried approximately $140 million in funded debt, split between an $80 million senior secured term loan and a $60 million asset-based facility that was overdrawn by about $30 million, as detailed in the First Day DeclarationDkt. 3.
The restructuring ran on twin tracks: a section 363 sale and a liquidation plan. Early in the case the Debtors obtained combined DIP financing and cash-collateral authority providing roughly $60 million of total commitment, including $20 million of new money from TZ SSE Buyer LLC, which also served as stalking-horse and ultimate credit-bid purchaser of the assets. The sale closed in July 2024 and fully satisfied the DIP obligations. With the operating business sold, the Debtors pivoted to a liquidating plan, filing the Amended Combined Plan of LiquidationDkt. 344 in September 2024 and then superseding it with a Second Amended Combined Plan in October. Class 3 creditors accepted that plan by 98.51% in dollar amount and 89.07% in number, and the court granted final disclosure-statement approval and confirmed the plan through the Confirmation OrderDkt. 442 on October 22, 2024.
Under the confirmed plan, remaining assets, books, and records passed to the liquidation trust; executory contracts and unexpired leases not previously assumed or assigned were deemed rejected on the effective date; and broad third-party releases and exculpation provisions took effect. The case's principal remaining work is administrative—claim reconciliation and distributions by the Liquidation Trustee, under a 30-day bar date for administrative claims arising after July 26, 2024 and a parallel window for professional fee applications measured from service of the effective-date notice.
