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.
Actions: Completed a thorough assessment of the business, and prepared a new business plan that changed the business strategy and operating structure which provided a basis for the continued operations of the business.
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.
