Kern Gillette Joins Revitalization Partners as Senior Director


Kern Gillette joins Revitalization Partners as Senior Director

Seattle, Washington April 18, 2018 – Revitalization Partners is pleased to announce that Kern Gillette has joined Revitalization Partners (RP) as a Senior Director. Before joining RP, Gillette was founder and managing member of Gillette Northwest, LLC.

In addition to nearly a decade as an advisor to distressed situations he has over 15 years’ experience as a C- Suite executive, in CFO and CEO roles.

Prior to Gillette Northwest, Mr. Gillette was Senior Director with Alvarez & Marsal ‘s North American Commercial Restructuring practice. Before A&M, Kern was Principal with Scouler & Company, where he worked with distressed companies, lenders and creditors across the country.

Mr. Gillette brings to RP a strong track record of successfully representing constituencies in the restructuring and bankruptcy process, as well as expertise in complex analysis, strategy development and leading entities through difficult transitions. His work has spanned a variety of industries, including: food processing, multi-unit retail including restaurants, technology, manufacturing, franchise, retail and wholesale distribution, seafood catching and processing, lumber and specialty building products, financial and professional services, aerospace, real estate, construction and alternative energy.

He has direct experience with a wide variety of capital structures including family owned, private equity, ESOP, public, and cooperative.

Mr. Gillette served as Engagement Lead Financial Advisor for Hot Dog on a Stick, a quick service food retailer; Beall Corp., a tank and trailer designer and manufacturer; and Qualteq, Inc., a direct mail marketer. Recently he represented lenders interests in a large vertically integrated seafood company transaction, monitoring operational performance and cash management for many months prior to the sale of the entity. Among his many previous engagements, he was Financial Advisor to Contessa Premium Foods, Inc., a frozen foods packaging and distribution company, and Universal Building Products, Inc., a manufacturer and supplier of concrete forms and accessories.

Mr. Gillette has wide and deep experience as an operator. Positions include President and CEO of Cinnabon, Molbak’s and Graces Kitchen. He was CFO of Reese Brothers, Cinnabon, Grace’s Kitchen, and Olympic Boat Centers. As President, Chief Executive Officer and Chief Financial Officer of Cinnabon, Inc., the national food retailer and franchisor, Mr. Gillette designed and executed a successful turnaround.

As Chief Executive Officer of Molbak’s, a regional specialty retailer, he executed a successful creditor composition plan and led the company through reorganization. As Chief Financial Officer of Olympic Boat Centers, he guided the company through the bankruptcy process.

Mr. Gillette earned a bachelor’s degree in accounting from the University of Washington and an MBA from Eastern Washington University. He is also a Certified Public Accountant (inactive).


About Revitalization Partners

Revitalization Partners specializes in improving the operational and financial results of companies and providing hands-on expertise in virtually every circumstance, with a focus on small and mid-market organizations.

Whether your requirement is Interim Management, a Business Assessment, Revitalization and Reengineering or Receivership/Bankruptcy Support, we focus on giving you the best resolution in the fastest time with the highest possible return.

Skyway Luggage Takes Step Toward Liquidation

By Seattle Times business staff, Business & Technology
December 15, 2011

The receiver in charge of Skyway Luggage, owned by Seattle Metro Chamber of Commerce Chairman Henry “Skip” Kotkins Jr., sought court approval this week to sell its Western Avenue building as the first step in an “immediate liquidation” of the century-old company.

The receiver in charge of Skyway Luggage, owned by Seattle Metro Chamber of Commerce Chairman Henry “Skip” Kotkins Jr., sought court approval this week to sell its Western Avenue building as the first step in a planned liquidation of the century-old

Kotkins, Skyway’s chairman and CEO, placed the company in receivership in June, saying it was unable to pay its debts. Receivership, an alternative to bankruptcy, is handled in Superior Court and gives an independent official control of the company to maximize payment for creditors.

Skyway’s other assets include another property, accounts receivable and a 73-foot sailboat, according to court filings.
Alan Davis, the receiver, said he’s hopeful Skyway’s trademarks, customer accounts and other assets can be sold together “so the Skyway brand and everything continues.” There’s no timetable for completing the asset sales, said Davis, a turnaround expert at Revitalization Partners in Seattle.

A financial statement filed by Davis in August put Skyway’s assets at $26.7 million, including $14.7 million in a note due for a loan made by the company to an unnamed Skyway shareholder, evidently Kotkins. Its liabilities were $16.4 million.

John Rizzardi, an attorney for Kotkins, declined to comment on the case. Kotkins could not be reached. The receiver has a deal to sell Skyway’s downtown Seattle building at 2501 Western Ave. for $2.1 million in cash, documents say.  The property secures a $9.3 million claim against Skyway by Wells Fargo Bank.

Skyway’s luggage, made in China under contract, is sold under brands including Eddie Bauer, Sigma3 and Vector.

China-based Harmony Travelware, a luggage manufacturer, in July claimed it is owed $6.1 million.  The receiver argues that Harmony is an unsecured creditor and “it is unlikely unsecured creditors will receive a meaningful distribution.”

Skyway, according to its website, was founded in 1910 by Lithuanian immigrant A. J. Kotkins as Seattle Suitcase Trunk and Bag Manufacturing.  Skip Kotkins began a one-year term as volunteer chairman of the chamber at its Sept. 16 annual meeting.   He’s a director of building-services company ABM Industries and previously was a director of Cutter & Buck and Rainier Bancorporation, among others.

Sale Likely For Skyway Luggage As Owner, Receiver Battle In Court

From the Puget Sound Business Journal: by Jeanne Lang Jones, Staff Writer
December 16, 2011,

Prominent Seattle businessman Henry “Skip” Kotkins Jr. is embroiled in a multimillion-dollar legal battle with the receiver he selected to sell his family’s struggling Skyway Luggage Co. and its assets to satisfy creditors.

The legal dispute arose out of a financial crisis that has hobbled the 101-year-old Seattle company credited with popularizing the wheeled suitcase.

The receiver, Revitalization Partners LLC, in early November filed a lawsuit in King County Superior Court accusing Skyway Luggage CEO Kotkins and other company executives of “excessive wages” and “failures … to exercise any management or control,” among other things, according to the complaint. The lawsuit also accused Kotkins of “unjustly enriching” himself with $14.9 million in personal loans.

Kotkins denied the allegations, arguing that the company was dragged down by market conditions, a dramatic industry consolidation, and that the temporary loans he received were common practice for a family owned business.  Both sides agree that the company’s financial condition deteriorated and it needs to be sold.

Seattle-based Revitalization Partners, acting on behalf of Skyway Luggage’s creditors, is seeking at least $39.9 million from Kotkins, as well as at least $6 million each from two other company executives, according to the lawsuit.  Kotkins, who chairs the Seattle Metropolitan Chamber of Commerce and is a director for the Seattle Branch of the Federal Reserve Bank of San Francisco, told the Puget Sound Business Journal he has done nothing wrong.

“I know what I did and why I did it, and I did not do anything wrong or illegal,” he said. “If I had, I wouldn’t have chosen to go into receivership. Why expose myself to any public document scrutiny if I had done anything wrong?  “I have lived my whole life as an upstanding, contributing part of the community. Everyone knows me and my reputation is strong.”  Kotkins’ attorney, John Rizzardi of Seattle law firm Cairncross & Hempelmann PS, said his client denies the allegations.

The receiver’s attorney, Michael Nesteroff, of Seattle law firm Lane Powell PC, declined to comment on the case.    Whatever the outcome, the dispute is probably the beginning of the end of the Kotkins family’s ownership of Skyway Luggage, which was founded by Kotkins’ grandfather in 1910 and survived the Great Depression. Three generations of the Kotkins family have managed the company, which is now owned by Skip Kotkins and a family trust.

In recent years, the company made luggage under its own brand and under a manufacturing licensing agreement for retailer Eddie Bauer, among others.

The lawsuit and related documents, along with several interviews with Kotkins and other parties to the dispute, paint the picture of a third-generation owner who put his struggling company into receivership, only to have the receiver sue him and other executives for damages.

Kotkins said he put his own company into receivership in June, after Skyway Luggage foundered under the onslaught of a “perfect storm” of business reversals. The recession battered the company’s sales, one of its largest customers couldn’t pay its bills, and the company struggled with its main Chinese manufacturer over quality issues, he said. The recession has claimed a number of other wholesale luggage makers that have either closed or been sold to competitors as the industry consolidates.

The receiver, Revitalization Partners, specializes in business turnarounds, receiverships and bankruptcy and crisis support.  Similar to a bankruptcy filing, receiverships in Washington state put litigation and collection proceedings on hold, but the procedure does not follow the same strict timelines as bankruptcy, allowing the receiver greater flexibility in selling assets.

Kotkins said he concluded that Skyway Luggage was worth more as a going concern, and should be sold as an intact business.
“Skyway going it alone as an independent company did not make sense,” Kotkins said. “It needed to be part of a larger operation.   And, at my age and stage in life, it made sense to be a seller.”

But the lawsuit filed by the receiver painted a different picture of what was behind the company’s financial struggles. Revitalization Partners alleged in its lawsuit that it “was appointed due to Skyway’s mounting financial difficulties arising from the diversion of its working capital to fund excessive wages to Kotkins” and two other executives, William H. Wilhoit, the chief operating officer and president; and Jennifer Carmichael, the executive vice president and secretary.

Carmichael is Wilhoit’s daughter. Wilhoit, who joined the company in 1990, was appointed president in 2003. According to Kotkins, Wilhoit oversaw much of the company’s day-to-day management.  Skyway Luggage’s performance was also compromised, the lawsuit alleged, by “personal loans” to Kotkins, as well as by “the failures of Kotkins, Wilhoit and Carmichael each to exercise any management or control over the corporation’s business.”

“The company now faces potential liquidation because of its lack of working capital and inability to access credit,” the lawsuit said.  The attorney for Wilhoit and Carmichael, Chris Nicoll, of Nicoll, Black & Feig PLLC in Seattle, said, “Bill and Jennifer are capable and competent executives.  They sought out and relied upon the advice of professionals and we will be providing our defense in due course.”  Kotkins said of the allegations: “Anybody can say anything they want in a complaint, and they usually do.”

Revitalization Partners is asking for a judgment of at least $25 million against Kotkins and $6 million each against Wilhoit and Carmichael, alleging breaches of fiduciary duty, waste of assets and unjust enrichment.  The receiver is also seeking a judgment of $14.9 million for amounts owed on a series of loans Kotkins obtained from the company between 2006 and 2010.

In detailing its claims against Kotkins, Wilhoit and Carmichael, the receiver put forth its scenario of the company’s decline.
Between 2006 and 2010, the company’s gross sales plunged 69 percent — from $46.6 million to $14.6 million — and the company became insolvent, the receiver contends in its lawsuit.

In his answer to the complaint, Kotkins denies the company was insolvent in 2007, claiming it had a net worth of close to $20 million at that time. He admitted that Skyway Luggage’s financial condition deteriorated between 2007 and 2010, but denied that the decline was the result of his taking loans from the company.

Instead, he said “the greatest cause of Skyway’s deteriorating financial condition … was the drop in value of Skyway’s marketable securities portfolio,” which was “the primary contributor to Skyway’s inability to pay its vendors.”

The securities portfolio was later surrendered to the company’s bank.  Kotkins also “denies that he failed to exercise appropriate supervision and control over Skyway’s officers and employees,” his answer to the complaint said.  Meanwhile, the receiver claimed the company paid $5.3 million in dividends to Kotkins that was used to pay off unspecified prior loans, according to the lawsuit.

Kotkins’ lawyer, Rizzardi, points out that for Subchapter S corporations, such as Skyway Luggage, shareholders are responsible for paying the company’s taxes and that distributions are commonly made for that purpose.  In October, Revitalization Partners told the court it had a plan for selling Skyway Luggage and its assets, and had received an offer on one of the company’s properties.

Revitalization Partners’ Al Davis said he believes the Skyway Luggage brand name will survive.  “Our objective always is to maximize the value of the assets, and Skyway is an iconic brand,” he said. “I believe we will be successful in having it survive.”
In mid-November, with the holiday shopping season nearing, the court authorized the receiver to sell certain Skyway inventory for approximately $1.3 million.

Kotkins and his company face other challenges.  In July, Kotkins and his wife, Jacqueline, gave Columbia State Bank their home in Seattle’s Magnolia neighborhood with a deed in lieu of foreclosure.  Kotkins said the couple, as empty nesters, had wanted to downsize to a smaller residence.  They had been trying to sell their home for 16 months and had dropped the price by 40 percent when they contacted the bank about taking the deed, he said.

“We initiated that idea and they agreed,” said Kotkins. “We are very pleased that this allowed us to move to a smaller residence, as so many couples do at our stage in life.”  The house is currently listed for sale for $4.9 million, according to the online listing service

In November, Wells Fargo Bank sued Kotkins personally for $9.5 million in King County Superior Court, claiming he unconditionally guaranteed a series of loan agreements between Skyway Luggage and Wells Fargo that were not repaid.
Wells Fargo’s attorneys did not return calls for comment on that case. Rizzardi said it was “unfortunate” that Wells Fargo took legal action rather than being willing to wait for the assets to be sold.

Skyway Luggage’s main manufacturer and largest unsecured creditor, Suzhou Harmony Travelware Co. Ltd. in China, claims it is owed about $6 million, said Harmony’s attorney, Dean Messmer of Seattle law firm Lasher Holzapfel Sperry & Ebberson PLLC.  According to a declaration that’s part of the court file in the receiver’s lawsuit, Skyway Luggage made its last payment to Harmony in May, when the Chinese manufacturer stopped shipments. At the time, Harmony claimed it was owed about $4.4 million for shipped orders.

“We are waiting to see the results of the receiver’s liquidation of assets and the receiver’s lawsuits against Mr. Kotkins and the other officers of the company,” said Harmony’s attorney Messmer. “If he is successful, my client will be repaid in full.”
Rizzardi said Harmony’s claims are in dispute.

“Our understanding is the receiver wants to complete the receivership as quickly as possible,” Rizzardi said. “It will sell the assets, possibly resolve the lawsuit in mediation and obtain a decision on the disputed Harmony claim in coming months.”
Meanwhile, Kotkins is working on selling his family’s company with Davis, the receiver, who is simultaneously suing him in King County Superior Court.

Davis said: “This is a business problem. It is not a personal problem.”  “It is a strange situation,” Kotkins said. “I’ve got someone who is suing me and I’m working closely with them every day.”


A Three-Generation Endeavor

The legal battle between Henry “Skip” Kotkins Jr. and the court-appointed receiver for his business, Skyway Luggage Co., is the greatest challenge yet for a family that has weathered crises through three generations.

The Seattle-based company was founded in 1910 by Kotkins’ grandfather, Abe Kotkins, a Lithuanian immigrant, as Seattle Suitcase, Trunk and Bag Manufacturing Co., according to a history on the Skyway Luggage website.  Abe Kotkins built the business for a quarter century, then struggled to keep it afloat during the Great Depression. He died of a heart attack at the age of 49, reportedly having worked himself to death.

His son, Henry Louis Kotkins, was a year out of law school when he stepped in to save the family business in 1936. He was an innovator, renaming the company Skyway Luggage to capture the excitement of the growing airline industry. He rolled out colored luggage at a time when most baggage was a somber black or brown.

Henry Louis Kotkins also had an active civic life. He served as a Port of Seattle commissioner for 13 years, helping forge a relationship with China. That nation has since become one of Washington state’s largest trading partners. He was a devoted Rotarian and on the committee that helped stage the 1962 Seattle World’s Fair. He died in 2002, according to newspaper obituaries.

His son, Henry “Skip” Kotkins Jr., joined the company full time in 1972 and became CEO and chairman of the company in 1980. He, too, has a long résumé in civic affairs. Henry “Skip” Kotkins Jr. is currently chairman of the Seattle Metropolitan Chamber of Commerce and a director for the Seattle Branch of the Federal Reserve Bank of San Francisco. He is also past president of the Rotary Club of Seattle, past chair of the Washington Council on International Trade, and a former trustee of the Fred Hutchinson Cancer Research Center.

Radio Station Transactions

Revitalization Partners was involved in the following radio station transactions:

$1.625M KCBF-AM/KFAR-AM/KWLF-FM/KXLR-FM & KTDZ-FM Fairbanks AK (Fairbanks, College AK) from Revitalization Partners LLC, General Receiver (Alan M. Davis) to Anchor Radio of Fairbanks LLC, a subsidiary of Anchor Radio LLC (Peter Davidson, Russ Jones). $162.5K escrow, balance in cash at closing. Existing superduopoly. [FCC file date 12/17/10]

$275K KDBZ-FM/KFAT-FM & KBBO-FM/KXLW-FM Anchorage AK (Anchorage, Houston AK) from Revitalization Partners LLC, General Receiver (Alan M. Davis) to Ohana Media Group LLC (Trila Bumstead). $27.5K cash, balance in cash at closing. Existing superduopoly. [FCC file date 12/17/10]

$190K KAST-AM/KKEE-AM, KCRX-FM, KVAS-FM & KLMY-FM Astoria OR/Long Beach WA (Astoria, Seaside OR, Ilwace, Long Beach WA from Revitalization Partners LLC, General Receiver (Alan M. Davis) to ) to Ohana Media Group LLC (Trila Bumstead). $22.5K escrow, balance in cash at closing. Existing superduopoly. [FCC file date 12/17/10]

New Northwest Radio Deals Filed With FCC

Revitalization Partners, the receiver selling off chunks of the failed New Northwest Broadcasters radio group, has two buyers and three contracts in the FCC hopper, pertaining to stations in Anchorage AK, Fairbanks AK and Astoria OR-Long Beach WA. The Fairbanks agreement is by far the biggest of the three.

In the Fairbanks deal, Peter Davidson and Russ Jones and their Anchor Radio Inc. will be adding a market that will truly stick out in a station portfolio that at the moment includes stations in Kentucky, Tennessee, North Carolina, New Jersey and Connecticut.

Anchor will be getting KCBF-AM, KFAR-AM, KWLF-FM, KXLR-FM and KTDZ-FM for $1.625M cash in a deal brokered by Kalil & Co. All of the stations are licensed to Fairbanks with the exception of KTDZ, which is in nearby College AK.

In Anchorage, the buyer is Trila Bumstead and her Ohana Media Group. Bumstead should be familiar with the properties, since she has been an exec with New Northwest. The stations include KDBZ-FM and KFAT-FM, both licensed to Anchorage, and KBBO-FM and KXLW-FM, both licensed to Houston AK. The price for the quartet is $275K cash.

Bumstead and Ohana are also the buyers in the Oregon-Washington deal. That set of stations includes KAST-AM and KKEE-AM Astoria OR, KCRX-FM Seaside OR, KVAS-FM Ilwaco WA and KLMY-FM Long Beach WA. The price there is $190K cash.

The total value of the three deals is $2.09M. Add in the $6M pricetag of an earlier deal to buy NNWB stations in Yakima WA and Tri-Cities WA in another Kalil-brokered deal and the total resale value of the group goes up to just over $8M.

According to the list of licenses held by Revitalization, there is but one NNWB market still on the shelf, a five-station cluster in Klamath Falls OR. Four of the stations, KAGO AM-FM and KLAD AM-FM, are licensed to that community, and are joined in the cluster by KYSF-FM Bonanza OR.

Receiver Takes Over New Northwest Broadcasters

Assignment For The Benefit Of Creditors News

RE:  New Northwest Broadcasters


Receiver Takes Over New Northwest Broadcasters Petitions For Receivership

The licenses held by NEW NORTHWEST BROADCASTERS, LLC are being assigned to ALAN M. DAVISREVITALIZATION PARTNERS, LLC as receiver for the company.  The move, a WASHINGTON state court procedure, was made under a court-supervised Assignment for the Benefit of Creditors.  NEW NORTHWEST owns 31 full-power stations and an FM translator in WASHINGTON state, ALASKA, and OREGON.


Townsquare Media To Acquire 6 Yakima Stations
by Mai Hoang Yakima Herald-Republic

YAKIMA, Wash. — The landscape of the Yakima Valley radio industry will see big changes in the next year, including change of ownership and the relocation and change in frequency for several stations.

Townsquare Media has an agreement with Seattle-based New Northwest Broadcasters to buy six stations each in Yakima and the Tri-Cities, according to a news release from the Greenwich, Conn.-based company.

But Federal Communications Commission regulations limit the number of stations a company can own in one metropolitan area. So, Townsquare Media will retain half the stations and put the rest into a trust to be run by a third-party trustee and eventually sold to another company.

For New Northwest Broadcasters, the sale is a move toward satisfying creditors, said Alan Davis, a principal with Revitalization Partners, a Seattle-based company that has had temporary control of New Northwest Broadcasters since it entered into voluntary receivership last spring.

Davis would not reveal the purchase price or how much debt New Northwest Broadcasters owes. He did say that New Northwest Broadcasters is looking to sell other stations.

READ MORE:    From the Yakima Herald-Republic Online News

New Northwest Broadcasters Petitions For Receivership


On May 17 New Northwest Broadcasters, headquartered in Seattle, Wash., filed for a voluntary Assignment for Benefit of Creditors in King County Washington Superior Court, according to NNB company officials. An ABC effectively puts the company in receivership status, providing court supervision of an orderly restructuring of the company and payment of its debts.

In addition to stations in Alaska, Washington State and southern Oregon, NNB Radio, established in 1998, operates five radio stations from offices in Warrenton: KAST 1370 AM, KKEE 1230 AM, KCRX 102.3 FM and KVAS 103.9 FM.

Alan M. Davis, a principal with the Seattle, Wash.-based firm Revitalization Partners, has been named as the receiver, and is acting on behalf of the creditors.    “This is not a bankruptcy situation,” Davis was quick to point out.

Davis described the scenario as a court-sanctioned process in which his responsibility as receiver is to “use the assets of the company to maximize the return to creditors.”

NNB will continue operations as it has been doing, Davis said.

“Nothing will change; the company will continue to operate as it has until a final decision by the court has been made,” he said.

Davis said there are many possible outcomes in a receivership situation, but a rumored liquidation is at the very bottom of a long list of options, especially for a company that has been operating very well.

READ MORE:  Coast River Business Journal


KARY-FM To Be Sold

KARY-FM (100.9 FM) is a radio station broadcasting an Oldies format. Licensed to Grandview, Washington, USA, the station serves the Yakima area. The station is currently owned by New Northwest Broadcasters, LLC.[1]

The station went on the air as KGRU on 1987-04-22. on 1988-05-01, the station changed its call sign to the current KARY.[2]

On May 26, 2010, it was rumoured KARY’s parent company New Northwest Broadcasters‘s stations could possibly be sold in the near future. Principal of Revitalization Partners, Alan Davis says “The stations are on the air; it’s business as usual. I can only tell you there appears to be demand for the stations.”[3][4]



New Northwest Broadcasters To Restructure Debt

FAIRBANKS — A recommendation is expected next month on a plan to restructure New Northwest Broadcasters, the Seattle-based media company that operates five Fairbanks radio stations.

A Washington court assigned a receiver in May to help restructure the company to ensure that it pays its debts. Revitalization Partners expects to issue a plan in September for the court to consider, said Alan Davis, a partner in the company.

Read more: Fairbanks Daily News-Miner – New Northwest Broadcasters to restructure debt


“Significant” Demand For New Northwest.

Typical seller hyperbole is a lot less likely coming from a receiver hired by a court to sell a broadcast group.  Revitalization Partners Alan Davis tells the Yakima Herald potential buyers are lining up for New Northwest Broadcasters.

READ MORE:  Inside Radio



The station went on air as KCHT on 1960-11-09. On 1997-12-08, the station changed its call sign to KJOX and on 2004-08-01 to the current KBBO.[4]

On May 26, 2010, it was rumoured KKBO’s parent company New Northwest Broadcasters‘s stations could possibly be sold in the near future. Principal of Revitalization Partners, Alan Davis says “The stations are on the air; it’s business as usual. I can only tell you there appears to be demand for the stations.”[5][6]



FTC Document:

Federal Communications Commission (FCC …  7918 REVITALIZATION PARTNERS, LLC, GENERAL RECEIVER Involuntary Assignment of E 980 KHZ SELAH, WA License, as amended From: NEW NORTHWEST BROADCASTERS, …