Hillman Solutions Corp. (HLMN) presents deeply negative liquidation recovery across all three MFFAIS measures as of March 28, 2026: CLV -$991M, LLV -$852M, OLV -$369M. The balance sheet structure drives this outcome: total assets of $2.36B are dominated by goodwill ($830M, haircut to $0 in liquidation), intangibles net of accumulated amortization ($531M, haircut to $0), and inventory ($483M, haircut to ~$290M at 60%). Tangible liquid assets are thin—cash of $27.7M and net AR of $137M (gross $139M less $1.9M allowance)—yielding recoverable liquid assets well below the $1.15B total liability stack. The liability side includes $714M of long-term debt (term loan balance of $634.8M plus ABL revolver draws of ~$79M), $83M of operating lease liabilities, $19M of finance lease liabilities, and $227M of current liabilities at face value. Under liquidation mechanics, the intangible and goodwill pile—totaling $1.36B gross, $1.36B carrying—contributes zero recovery while the debt and lease obligations survive at full face. PP&E net of $225M (gross $670M less $446M accumulated D&A) would recover perhaps $112-157M at 50-70%. The working capital position increased $53.9M quarter-over-quarter to $442.8M, driven by inventory build attributed to tariff front-loading and seasonal AR expansion, partially funded by $47.2M net ABL revolver draws. This revolver drawdown increased secured debt and worsened the liquidation deficit relative to December 27, 2025. Two acquisitions—Campbell Chain and Fittings and Delaney Hardware—closed post-quarter (April 3 and April 10, 2026 respectively); neither is reflected in the balance sheet and both will add goodwill and intangibles, further deepening the liquidation deficit in subsequent filings. The company filed a lawsuit on April 15, 2026 seeking refund of IEEPA tariffs; no receivable is recorded and the financial impact is stated as unquantifiable but potentially material. Operating cash flow was negative $19.5M for the quarter versus negative $0.7M in Q1 2025, primarily due to AR expansion and incentive compensation payouts. Adjusted EBITDA declined to $50.1M from $54.5M year-over-year, reflecting tariff cost pressure in Hardware and Protective Solutions where segment income from operations fell 65% to $4M. The filing does not separately tag goodwill impairment or intangible write-down charges in XBRL for this quarter; no such events occurred.
▼ Community Notes