Clarus Corp (CLAR) as of March 31, 2026 presents a deeply impaired liquidation recovery posture. Total reported assets are $243.3M, but applying standard liquidation haircuts strips the balance sheet substantially. Cash and restricted cash of $31.7M recovers at or near face value, though $9.5M is flagged as permanently reinvested in foreign entities, constraining near-term domestic availability. Accounts receivable of $48.4M (net of $1.2M allowance) recover at approximately $43-46M at 90-95%. Inventory of $82.2M — predominantly finished goods ($78.4M) — recovers at roughly $49M at 60%, reflecting branded outdoor/adventure goods that carry meaningful liquidation discount versus carrying value. PP&E net of $18.9M recovers at 50-70%, yielding approximately $9-13M. Critically, goodwill gross of $126.5M and indefinite-lived intangibles (trademarks $19.6M) plus finite intangibles net of $22.3M — totaling roughly $168M in intangible and goodwill value — recover at zero under liquidation convention. Other long-term assets of $15.6M (includes operating lease ROU assets of approximately $11.5M at December 31, 2025, which do not separately appear in Q1 2026 XBRL but are embedded in OtherAssetsNoncurrent) also effectively recover at nil. Total liability stack at face value is $49.6M, including $38.0M current and $11.6M noncurrent, with no long-term financial debt (credit facilities confirmed terminated as of March 31, 2026). Operating lease obligations total approximately $11.4M ($2.7M current + $8.7M noncurrent) and must be settled at face value in windup. The $2.5M CPSC accrued contingency (recorded as low-end estimate; CPSC staff recommended $16.1M and $9.0M penalties across two separate matters, with DOJ criminal referral active and DOJ targets identified) represents a material unquantified tail liability above book. Maximum disclosed penalty exposure is approximately $30.1M across the CPSC matters alone, against a $2.5M accrual — a gap of $27.6M that is not reflected in total liabilities. The Board has also disclosed a strategic alternatives review, which creates optionality but also execution uncertainty and cost drag ($1.4M in legal/regulatory matter expenses Q1 2026). MFFAIS CLV is negative $16.9M, LLV is $31.5M, and OLV is $113.7M. The negative CLV is consistent with the analysis above: after haircuts on inventory, PP&E, and intangibles, and recognizing that the CPSC/DOJ liability is materially underreserved relative to disclosed penalty ranges, recovery to equity in a cash liquidation scenario is negative. The LLV of $31.5M roughly tracks cash and near-liquid receivables net of current liabilities, consistent with the balance sheet. No long-term debt is present — a meaningful positive change versus prior periods when credit facilities existed. Accumulated deficit is $461.5M, and the company has full valuation allowance against U.S. deferred tax assets ($29.3M VA against $40.3M gross DTA as of December 31, 2025), confirming the tax assets have no liquidation value.
▼ Community Notes