HSS is the nation’s largest provider of outsourced staffing solutions for the hospitality, gaming, and lodging industries. Founded in 1990, HSS has built an impressive list of blue chip clients, among numerous other prestigious hotel brands and high profile resorts and casinos. The Company is a flexible staffing solutions provider for the hotel industry. HSS removes the staffing burden from the general manager and the human resource departments at client hotels by handling all hiring and retention of employees, from providing legal documentation, effective training and supervision to paying salaries, workers’ compensation and payroll taxes. HSS is able to provide an exceedingly efficient recruiting process because of its mobile, feet-on-the-ground recruiting operation. The Company is based in Atlanta, GA.Transaction:
We have had a relationship with HSS since 2007. Following the sale of HSS to another institutional private equity investor in 2010, the Company made several changes to its strategic operating plan, including replacing the Company’s CEO, which resulted in significant increases in corporate and regional expenses, thereby reducing profitability and EBITDA. As a result, HSS filed for bankruptcy protection. In December 2013, Littlejohn Capital and Caymus Equity, after purchasing the senior debt, officially became the successful bidder and acquired the assets of the Company upon emergence from bankruptcy.
HSS is one of the few staffing solution providers that has the ability to provide a complete end-to-end outsourced staffing solution. As such, it has proven its ability to provide a consistent, high-quality product of services that makes the customer very loyal to HSS. HSS’s ability to maintain long-term relationships with its customers has driven new business as the referral based marketing strategy is extremely effective within hotel industry markets. We believe that the Company’s size and position in the marketplace was an opportunity to capitalize on a strong business within a well-established, $130+ billion industry.
We worked with management to establish and implement several turnaround initiatives including (i) the renewed focus on new business efforts and personnel, (ii) the implementation of a Risk Prevention Program and (iii) the further implementation of technology-based improvements. Historically, HSS has demonstrated an ability to grow strategically in existing and new markets. As such, we worked with HSS to help them grow through the “build then staff” model as opposed to the “staff then build” model, which can be a significant drag on profitability.
Securities Offered through Caymus Securities LLC, Member FINRA/SIPC
One Paces West
2727 Paces Ferry
Road SE, Suite 1650
Atlanta, GA 30339
T (404) 995-8300
641 Lexington Avenue
New York, NY 10022
T (212) 755-3600