HILCO HAPPENINGSFEBRUARY 10, 2017

Gary Epstein 847-418-2712 gepstein@hilcoglobal.comKaren Bubrowski 847-849-2911 kbubrowski@hilcoglobal.comAmelia Thorne 847-849-2945 amthorne@hilcoglobal.com

HILCO GLOBAL NEWS AND ACTIVITYHilco HELPS in 2016

Last year Hilco Global and the Operating Companies and employees supported dozens of charitable and community causes and continued to be a key sponsor and champion of children and education, supporting organizations ranging from Youth Guidance BAM and WOW programs, The All Stars Performing Arts Project, the Chicago Police Foundation, JUF, Catholic Charit ies, Juvenile Diabetes Association, The American Red Cross, Nordoff Robbins and many more. We?re proud of all the work done by the entire Hilco Global organization around the world and the passion for helping those less fortunate.

M & A Advisor recently announced the winners of its annual Turnaround Business Awards. The publication will honor Hilco Merchant Resources, Hilco Real Estate and Hilco Streambank for several impressive deals in 2016. All 3 business units have been recognized for their work on the Simply Fashion and Aeropostale deals. The awards will be presented at a Black-Tie Gala on Thursday, March 23rd, 2017 at the Colony Hotel, Palm Beach, FL. Click here for more information.

Mult iple Hilco Global Operat ing Companies Honored by M&A

HILCO REAL ESTATE AUCTIONS & BROKERAGE

Upcoming REO Asset Auct ion for large Il l inois-based Bank Hilco Real Estate Auctions announced the upcoming online sale of REO assets on behalf of a large Il l inois-based bank. Included in this offering are income-producing buildings with commercial tenants, commercial parcels, and sizeable residential parcels for subdivision development. Jeff Azuse says, ?Virtually all sites are ideal for development, redevelopment, or immediate occupancy and have tremendous value-add potential.? The auction is from 9am-5pm on February 28th. Click here to read the press release.

Court-Directed Sale of Largest Cont iguous Downtown Milwaukee Development Parcel As part of the court-directed sale, the Hilco Real Estate Brokerage team is conducting a bankruptcy sale of the 46-acre former Solvay Coke property in Milwaukee, WI. Occupying a preeminent position along the Kinnickinnic River, the property has access to the Lincoln Memorial Harbor and just minutes south of downtown Milwaukee. There is a qualifying bid deadline set for March 21, 2017 and Wisconsin Gas, LLC has been approved as the ?stalking horse? bidder. Read the full release here

Greg Apter Addresses the TMA Dist ressed Invest ing Conference on the future of Shopping Mal ls and other RetailersGreg Apter, President of HRE, was a speaker at the TMA Distressed Investing Conference on February 1, 2017 in Las Vegas. Greg spoke on the following topic: ?New Retail Consumer: Going Beyond the Balance Sheet to Address Core Business Challenges Facing Retail in America?. The panel discussed issues ranging from the changing demographics of shoppers; the cost of rents/ leases in shopping malls; the loss of anchor tenants and the rise of e-commerce and mobile commerce.

HRE REDEVELOPMENT PARTNERSTradepoint At lant ic's 3,100-acre redevelopment of the former historic Bethlhem Steel site in Bal t imore cont inues to expand 2016, adding jobs and invigorat ing the economy. As the project continued to gain traction with new leasing last year, Tradepoint unveiled plans to add a 130-acre commercial hub to the former Eastern Baltimore County industrial site. The 150,000-square-foot Shoppes at Tradepoint Atlantic will include retail and hotel space off Interstate 695 at the Peninsula Expressway. Also, Under Armour announced in August it had inked a deal to build a 1.3-mill ion square foot distribution center at Sparrows Point, expected to create 1,000 new jobs and open in the summer of 2018. Other early leases at the Tradepoint Atlantic site include Pasha Automotive Services, which in June announced it would lease 21 acres for a vehicle processing and distribution facil ity for Fiat Chrysler there. FedEx Ground and Harley Davidson have also signed deals.

Rendering of Shoppes at Tradepoint Atlantic

HILCO INDUSTRIAL & HRE ACQUISITIONSTurnkey Manufacturing Plant Of fering In Canada Hilco Industrial and Hilco Real Estate Acquisit ions have joined forces with Prestige Equipment Corp. to offer for immediate turnkey sale of heavy precision machining, metal operation & real estate for Mitsubishi Hitachi Power Systems. This sale includes the power generating housing, wind turbine power, and the pressure vessel manufacturing facil ity.

HILCO DO BRASILHilco Global builds New Business Relat ionships Within the Brazil ian Retail Sector In late January, Hilco Global and Hilco Global do Brazil hosted a full day high level Retail Executive Summit at the NY Waldorf Astoria. The event which took place during annual National Retail Federation conference, brought together over 350 Brazilian and American retail leaders and covered topics crit ical to retail inside and outside Brazil. Cory Lipoff had the distinct pleasure of introducing Alan Greenspan (former president of the Federal Reserve System). Greenspan?s presentation was a highlight of the event which included the heads of retail for Facebook and Apple as well. CEO Tom Felsberg and CMO Gary Epstein were embedded with the Brazilian delegation during the NRF and many new contacts were developed. Hilco Global presented several delegates with new Polaroid Cube cameras. Click here to read more (Story in Portuguese)

Cory Lipoff speaking at conference Alan Greenspan

From left: Marcos, Gary and Tom

HILCO MERCHANT RESOURCES

HMR and JV Partners Have Been Selected to Liquidate The Wet Seal Stores Hilco Merchant Resources and their joint venture partners have teamed up to conduct store closure sales for the remaining 137 Wet Seal stores and ecommerce websites as a part of Wet Seal?s bankruptcy proceedings. The sales include all merchandise, f ixtures and equipment. Customers can take advantage of store closings with 40-60% off apparel from Wet Seal. Click here for full details.

Cory Lipof f To Keynote at INSOL 2017 in Sydney Austral ia Cory Lipoff will serve as a keynote speaker at the 10th World Quadrennial Congress of INSOL International in Sydney, Australia in March. The topic of the session is Retail Disrupted: Welcome to the Hunger Games. The conference is attended by the leading insolvency experts from around the world and HMR will be prominently featured during the event. Click here for more information.

HMV Canada Liquidat ion Has Commenced Hilco Merchant Resources and their joint venture partners started the HMV Canada store liquidation sale at all 102 HMV stores throughout Canada on January 28th. The liquidation sale includes all store inventory and the f ixture, furniture and equipment.

HILCO CAPITAL

Hilco Capital has appointed Henry Foster as its new chief execut iveHenry Foster has served as a director at Hilco Capital since 2007 and will take overall responsibil ity for the Hilco Capital operations, including its retail restructuring services in the UK, Europe and Canada. In his previous role Henry led restructuring and turnaround projects for a number of high-prof ile transactions including Habitat and HMV. He currently sits on the board of HMV. Following Foster?s promotion, Hilco Capital founder Paul McGowan, who has served as chief executive for the past 17 years, will take on the role of executive chairman. Click here to read about the management changes.

HILCO MERCHANT IP BANKINGHILCO STREAMBANKHilco Strembank Acquires PowerBil t ? an Iconic Gol f and Performance Brand The 100-year-old brand, which has a history of accomplishment in the PGA Tour and majors, has been acquired by Hilco Streambank and JV partner One Step Up Apparel. Hilco Sreambank is excited about the acquisit ion and plans to honor the brand?s history and legacy as a performance brand by leveraging the historical equity of the brand and expanding its audience. Read the full press release.

IP assets of The Wet Seal are For SaleHilco Streambank has been retained to market and sell the intellectual property assets of The Wet Seal, LLC. Included in this deal are trademarks, domain names, customer databases, and the e-commerce platform. The bid deadline for this sale is February 28th. ?Wet Seal is an iconic brand that continues to resonate with its strong customer base?? said Hilco Streambank EVP ? David Peress. ?The IP portfolio presents a great opportunity to build on its strong base in both ecommerce and brick & mortar retail.? Mr. Peress added. Click here to read the PR.

Click t o view 100 Year Celebrat ion video

Hilco Fixture Finders is Pleased to Share Several Recent Promot ions - Tanner Yager has been promoted to Director of Business Development and

Marketing. - David Gernand has been promoted to Director of Sales and Purchasing. - Kate Lewis has been promoted to Marketing Coordinator. - Edonna Russell has been promoted to Accounting, Training and Compliance

Coordinator within the Project Management Department.

Recent HFF Deals: Shopko Department Stores Hilco Fixture Finders began the sale of (8) Shopko department store locations. In addition to liquidating f ixtures for the client, we have been engaged to assist with packing up select FF&E for retention by Shopko. This is a combination of both the sales and service aspects we are able to offer our clients that separate us from our competit ion. The sale continues into February and includes store equipment such as Lozier gondola & backroom shelving, pharmacies, garment racks, showcases, and more.

Kroger & Fresh and Easy Supermarket Sales A 55,000 sq f t Kroger sale was successfully completed this January in White Lake, MI. Hilco Fixture Finders also conducted the cleanout and sale of (3) former Haggen?s locations, and a former Fresh and Easy store in California for their prospective landlords.  

Motorola - Schaumburg Campus Engagement Wraps-Up ? Another Engagement on the Horizon January will mark the end of an ongoing project at the former Motorola campus. The sale has included everything from cafeteria equipment, to off ice cubicles, and everything in between. This has been a great project for our division and we hope that you had a chance to stop out and visit the Schaumburg, IL campus. Stay tuned for details on the next Motorola facil ity tentatively in April. We welcome the opportunity to have visitors from all divisions.

HILCO MERCHANT IP BANKINGHILCO FIXTURE FINDERS

HILCO VALUATION SERVICES

Hilco Valuat ion Services

Knows Its Craf t?

Hilco Valuation Services shares its expertise in the food and beverage industry with a series of e-blasts to potential customers. The e-blasts showcase Hilco?s deep category experience as a leader in providing food and beverage appraisals and valuations for breweries across the United States. Click here for email that went out to HVS contacts.

Valuat ion Team Issues Q1 Forestry Perspect ives Forestry products specialist and Hilco Valuation Services Vice President, Jesse Marzouk, report on the states of the pulp, paper, and lumber, industries. Factoring in supply and demand, recent company activity, international pricing and economic conditions, these reports provide valuable insight into the current forestry industries. Click here to read his insights.

Hilco Global?s Property Tax Advisory Pract ice The Property Tax team at Hilco Valuation Services is the sole outsourcing provider for a number of clients, offering clients a strategic cost-savings opportunity for managing non-core business, allowing the client to focus on other crucial core business activit ies. This enables businesses to devote 100% of their t ime and resources to meet f inancial goals and minimize overhead costs.

Read more from a case study to understand better Hilco's capabilit ies.

HILCO DILIGENCE SERVICESHDS Fuels Cont inued Growth Hiring Industry Leader Tom Scot t i in New Execut ive Director Role. In late January, Hilco Diligence Services hired Tom Scotti in a newly created position as Executive Director with a mission to support the f irms continued growth and expansion. The position reports to Hilco Diligence Services CEO Doug Jung, who leads the diligence services and f ield examination practice.

Tom is a well-known f inancial services industry leader. He brings considerable expertise with over 20 years? experience advising retail and consumer product companies that have undergone signif icant transformations.  Most recently Scotti spent 6 years as the Managing Director at Consensus Advisors in Boston representing companies, entrepreneurs, investors, creditors and lenders in f inancial and brand equity transactions. Additionally, from 2003 to 2010, Scotti served as President of the Appraisal and Valuation division at Gordon Brothers and from 1995 to 2003, Scotti served as the Managing Director of Fleet Retail Finance where he directed due diligence and collateral monitoring.  Tom began his career in the retail industry.

Tom completed his undergraduate work at Columbia University and The University of Cambridge and he received his MBA at Columbia University in 1988. Tom is Series 79 certif ied.

HDS Is Pleased to Share Some Recent Promot ions- Ryan Simon has been promoted to Senior Associate in NY- Rob Cuppens has been promoted to Executive Director of Dedham

HRC RETAIL ADVISORYHRC Retail Advisory publ ishes study ?Generat ion Z is the Driving Inf luence on New Consumer Spending Pat terns? The study conducted by HRC Advisory looks at the retail marketplace as it faces signif icant changes in the generational shif t. Generation Z has started to gain a foothold in the consumer spending environment and their expectations are transforming the retail landscape. Some key f indings include Generation Z is the driving force in households, malls are not dead, and online purchases are often highest among millennials. This study received a lot of attention from popular publications such as Retail Insider, WWD, HTT, and e-commerce bytes. Each publication highlights and analyzes important key points that the HRC Advisory team created for this study. Click here to view the articles on their website.

Jeff Hecktman, Farla Efros and Antony Karabus Celebrate a Sweet 2016 for HRC Retail Consulting

HILCO IP MERCHANT BANKING

Michael Friedman to Moderate Discussion ? ?Capturing Intel lectual Property Value in Transact ion? Hilco IP Merchant Banking?s Michael Friedman is moderating a discussion at the Chicago M&A Conference on March 2, 2017. Transaction Advisors puts on this yearly event which is designed for corporate executives at sponsored-backed and closely held middle market companies, chief f inancial off icers, general counsel, and board members/advisors and more. There is a variety of topics that will be discussed at this event, including due diligence, deal trends, and transaction liability. If you are interested in attending this event, please contact Karen Bubrowski. Click here for more information.

CORPORATE MARKETING

Upcoming Events

- TMA M ilwaukee Breakfast Program- February 14, 2017- Hilton Garden Inn- Comps available

- ACG Winter Social- February 15, 2017- Spin Chicago- Comps available

- TMA Winter Networking Event- February 23, 2017- The Library, Chicago- 3 Comps available

- ACG Annual Market Trends Breakfast- March 3, 2017- ACG Chicago- Comps available

- CFA Annual Blackhawks Outing- March 23, 2017- United Center, Chicago- 1 Comp available

Corporate Marketing Events

The marketing event season is in full sw ing. Now?s the t ime to begin planning your participation. Make certain that you are registered for each event you want to attend. Once registered, please communicate your plans to the marketing team so we can track participation and results for future planning purposes. Please send the name of the event, its location, dates and other general information via email to Karen Bubrowski (kbubrowski@hilcoglobal.com) to let her know the events you are planning to attend.

February 1 Steve Thorne

February 1 Kristen Stack

February 3 Jody Bacque'

February 5 Ed Zimmerlin

February 7 Adam Zimmerman

February 7 Eric Moore

February 9 Jill Derdzinski

February 9 Cory Lipoff

February 10 Pedro Aguilar

February 10 Gary Crunkleton

February 11 Clara D'Ambroseo

February 13 Krista Spano

February 13 Perez Eder Lopez

February 14 Guillermo Cervantes Gonzalez

February 16 Brendan Corby

February 17 Matthew Perry

February 18 Roshel Wagner

February 19 Brent Bonham

February 21 Andrew Chused

February 22 Charles Herdegen

February 23 Susan Kelly

February 24 Ania Caprio

February 27 Anne Scoble

February 28 Jeanne Brown

February 29 Todd Hoek

Email Signature InstructionsAs part of our Hilco Global branding init iative, we ask that all Hilco employees use some type of email signature that includes the Hilco Global or Hilco Business Unit branding in it. We have attached a set of instruct ions on how to change your email signature. For your convenience, to the right is an example signature. Feel free to copy it using your own information. Should you have any questions, including those regarding customization and help setting up the signature, please feel free to contact anyone on the marketing team. Thank you!

Sugar CRM Mobile App

The SugarCRM mobile application will makes easier to add, update, and view contacts on the go. The Corporate Marketing team is excited to demonstrate the application?s convenient functionalit ies such as adding notes through voice, logging a call within the app, or quickly f inding the information you need to make your next meeting successful. If you have any questions or would like additional training, please feel free to contact Karen Bubrowski or Amelia Thorne.

Karen Bubrowski

847.849.2911

kbubrowski@hilcoglobal.com

Amelia Thorne

847.849.2945

amthorne@hilcoglobal.com

Happy Birthday!