Provide restructuring services for a $275M fashion retailer with significant challenges around operating expenses, excess facilities and need to perform business unit divestitures.
Improve communications with lending groups including providing a restructured business plan.
Create a more cohesive management team and review new business opportunities with more rigor.
Solution
Drove weekly communication with all lenders to provide business updates including all restructuring activities.
Streamlined the business to reduce organizational complexity and improve financial leverage. Work with management to improve procedures and processes.
Results
Help drive reduced complexity in business by selling / divesting 3 business units and closure of 1 facility. Dramatic cash flow improvements thru improved inventory and cash management.
Working with management and the lending group, the company decided to liquidate the remaining part of the company with full recovery of all loans ($60m+) to lenders, no Personal Guarantee to shareholders ($10M) and majority of all employees finding home after the completion of the wind-down.
