May 9, 2016

Hilco’s Butler Departs to Start Investment Firm Birch Lake

Bloomberg News Enterprise

Jack Butler, an executive at financial-services company Hilco Global, is leaving the firm to start his own company.

Butler, 60, a turnaround expert, confirmed in an e-mail he will start a merchant bank called Birch Lake Holdings. The firm will focus on investing in healthy and distressed companies, as well as advising clients on mergers and acquisitions and restructurings.

“Birch Lake is the natural evolution of 36 years of dealmaking in the M&A, restructuring and investment communities,” Butler said in the e-mailed message Monday.

Hilco will work with Butler on future deals and will encourage its senior executives to partner with him on new opportunities, Hilco’s Chief Executive Officer Jeff Heckman wrote in a memo to top employees that was obtained by Bloomberg.

Gary Epstein, Hilco’s chief marketing officer, didn’t immediately respond to requests seeking comment.

Butler joined Hilco as an executive vice president two years ago and as a member of its leadership team. Before that he was a bankruptcy attorney at New York-based Skadden Arps Slate Meagher & Flom LLP for 23 years and worked on a number of high-profile deals including facilitating the merger of the bankrupt American Airlines Group Inc. and U.S. Airways Group Inc.

He also advised auto-parts maker Delphi Corp. and retailer Kmart Corp., which emerged from bankruptcy in 2003 and has since merged with Sears Holdings Corp.

Hilco, which does asset valuations and often helps clients liquidate merchandise, has been involved in the bankruptcies of RadioShack Corp., Borders Group Inc. and discount clothing chain Daffy’s Inc.

Hilco’s Butler Departs to Start Investment Firm Birch Lake

Faris Khan, Kenneth Pringle

Bloomberg Law

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