NATURE OF ASSIGNMENT:
Primary: Company Services / Bank - Creditor Negotiations
Secondary: Operations Improvement
Primary Industry: Processing
Company: Beef and Chicken Processor ($200 million in revenues)
Situation: A beef and chicken processor was undergoing severe financial distress. The Company’s relationship with its secured lender was strained and the Company had been given a few months to find another lender, which heightened the crisis environment. A bankruptcy filing appeared likely in the near future.
Focus Scope: Focus Management Group was engaged to review the Company’s operations and make recommendations for improvement.
Tasks Performed:
- The Focus Professional soothed the relationship between the Company and the secured lender.
- Innovative operating reductions were instituted, which quickly turned losses into profits.
- Actions were initiated that increased on-time deliveries and fill rates with a significant reduction in inventory and increase in working capital.
- Our Focus Professional also identified other cost reductions that saved the Company $1MM annually.
Results: Due to the efforts of Focus Management Group, a Chapter 11 filing was avoided, the secured lender removed its demand to the Company to find another lender and the Company became consistently profitable.