Business Description:
SFCA, Inc. (“SFCA”) is a Reading, PA based designer, distributor and importer of cribs, case pieces, changing tables, toddler beds, bassinets, and play yards which are sold through the mass and specialty retail chains.  Sold under the Simplicity brands, SFCA’s products enjoy a loyal customer following and are known for their safety, design and value. 

Transaction Background:
Simplicity, Inc. (“Simplicity”) was a fast-growing baby furniture designer and importer which had built a very strong brand.  In order to fund this growth, Simplicity used a line of credit provided by Wilmington Savings Fund Society (WSFS).  Due to significant one-time costs, Simplicity defaulted on its debt.  A Blackstreet affiliate purchased the debt at a significant discount to face value.   The affiliate then held a public foreclosure sale at which it purchased the assets of Simplicity.

Investment Thesis:
The Simplicity brand and products continue to be highly valued by consumers and retailers.  With new management, sourcing relationships and focus, we believe that SFCA can use the assets of Simplicity to build a very profitable business that is the leader in safety, value and design in the baby furniture industry.