Publicly Held Consumer Products Technology Company
December 6, 2009
Description: Developer of VCR+ Instant Programmer
Challenge: Develop an effective way to profitably market the concept beyond the initial product offering.
Actions: Created and implemented worldwide strategy to entice newspapers and television guides to publish VCR PlusCodes that created consumer demand for the technology. Responding to that consumer demand, manufacturer's agreed to pay a licensing fee for the technology.
Results: The Company grew to a valuation of multiple billion dollars and eventually purchased TV Guide from Rupert Murdoch. Currently the world's leading provider of Electronic Program Guides.
Major Daily Newspaper
December 6, 2009
Description: Second newspaper in a major metropolitan area.
Challenge: Circulation was falling and was controlled by the rival regional newspaper.
Actions: Helped design new information system for circulation. Reviewed operations of the Circulation Department and suggested changes.
Results: The paper took control of its own customer base and increased circulation.
Privately Held Early Stage Communications Company
December 6, 2009
Description: Company formed by a consortium of competitors to develop the standards for high-definition radio for the AM and FM broadcast bands.
Challenge: Build consensus on the direction and strategy for the company.
Publicly Held Specialty Apparel Retail Chain
December 6, 2009
Description: Private label apparel with over 50% of the product manufactured in Asia. The Company had embarked on a rapid expansion program increasing the store count by 50% over a three-year period and reaching revenue of $250M.
Challenge: Sales had declined by 25% during the previous year and the Company was forced to file for bankruptcy protection. The business had to be stabilized, creditors confidence restored and an acceptable plan of reorganization prepared. Unsecured Creditor claims amounted to approximately $60 Million.
Actions: Worked with Creditors and Vendors to restore confidence, prepared alternatives for a plan of reorganization. Managed the financial and related operations of the business.
Results: A Plan of Reorganization was approved and the company successfully emerged from Chapter 11. Subsequent to the reorganization, the company experienced two consecutive years of more than 6% pretax profits. Creditors from the bankruptcy proceeding received a return in excess of their claim value and pre-petition equity holders realized value from their holdings.
Publicly Held Men and Women’s Private Label Apparel Retailer
December 6, 2009
Description: The Company’s revenue had fallen significantly ($146M to $90M in three years), although store count had increased by 40% through an acquisition.
Challenge: Company had operating in Chapter 11 for six months and had failed to prepare a plan of reorganization.
Actions: Completed a thorough assessment of the business, and prepared and implemented a plan of reorganization
Results: Managed the Company’s Chapter 11 process including negotiating its reorganization plan and emergence from Chapter 11.
Successfully raised $30,000,000 in new equity investment and bank financing as well as obtaining a substantial Federal Income Tax refund utilizing a little known feature in the tax code.
Publicly Held Vertically Integrated Multi-Channel Consumer Products Company
December 6, 2009
Description: Bath and body products, cosmetics and fragrances. The Company developed and manufactured its products through its own manufacturing capabilities and third party contractors. Company marketed its products through company owned retail stores, catalog and website, as well as through wholesale channels.
Challenge: Sales volume had dropped from $103 Million to $70 Million during the preceding two-year period and accumulated large losses. The Company had tripled its store count over a three-year period subsequent to an IPO. Three years after the IPO the company filed for bankruptcy protection. A new business plan was required by the creditors committee to justify continued operations.
Results: The Creditors Committee agreed to the redirection and allowed time for the restructuring efforts. The Company was sold as part of the plan to finalize the Chapter 11 process.
Privately Held Communications Engineering & Products Company
December 6, 2009
Results: Provided interim-management, implemented a new business strategy and operating plan, provided leadership and direction for the on-going business, stabilized employee turnover and improved employee morale. Obtained substantial sales commitments to meet first and second quarter revenue forecast. Installed new management team and handed the company over to the new team.
Enterprise Software Company II
December 6, 2009
Description: A public middleware company that had allowed revenue to decline to near zero, was behind on its reporting, had several judgments against it, was in significant arrears to the IRS and secured lenders, and had relocated to Canada in an attempt to avoid the IRS claims. Yet the company had a loyal existing customer base and valuable middleware technology.
Challenge: Preserve the asset value of the company for the secured lenders; determine the viability of the company and develop a go forward plan.
Results: Initial analysis turned up improper payments of $2.1 million to the former consulting CFO. The secured lenders obtained the appointment of Revitalization Partners as Receiver to protect the remaining assets. Following foreclosure by the lenders of the assets of the company and the subsequent cross boarder bankruptcy, a new company was formed, purchasing the assets out of foreclosure and raising new working capital . Revenue increased to $15 million following two small acquisitions. The company was named one of the fastest growing IT Solution Providers in 2008.
Semiconductor Equipment Company
December 6, 2009
Description: A family owned manufacturer of semiconductor equipment, this company had been the market leader in its field for a number of years. As competition increased and the market matured, the company experienced losses, a loss of its bank line of credit and significant delays in the development cycle of follow on products, leading to a significant reduction in market share.
Challenge: Avoid Bankruptcy; generate new revenue; arrange for bank financing; get the development cycle on track.
Actions: Reduce costs by headcount reductions and reductions in carried inventory; arrange for new line of credit for both domestic and international sales; restructure sales organization including identifying and recruiting new channel partners; revamp the product development process with extensive controls put a system of financial controls in place including rigid cash management.
Results: After experience three consecutive years of losses, the company was profitable in 2008; several new products were introduced and the owners have a playbook for management of the company.
World Wide Branded Consumer Electronics Company
December 6, 2009
Description: A privately owned visual presentation company where revenue had declined significantly and was not profitable. The debt load had risen to a level that far surpassed its ability to repay it. The company was also administratively supporting three other related companies without compensation.
Challenge: Immediately reduce operating expenses, revamp the sales and operational management, reduce the debt load and return the company to profitability.
Results: Reduced the long term debt load from $11 Million to $1 Million by renegotiating the debt with the debt holders. The sales function was reorganized and streamlined. The commission structure was restructured and focused on selling the company's more profitable product lines. Expenses were reduced by restructuring the administrative functions so that they would only support the existing company. The Company returned to profitability with twelve months resulting in a successful sale.
