Privately Held Early Stage Communications Company
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
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
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
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.
Privately Held Communications Engineering & Products Company
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
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.
