NATURE OF ASSIGNMENT:
Primary: Lender Services / Restructuring Management
Primary Industry: Manufacturing & Processing
Company: Women's Apparel Retail with several locations in Canada
Situation: A Canadian retailer had experienced a sudden drop in profitability and a corresponding increase in inventory. The company over inventoried, spending too much on labor at store level, and having too much on order.
Focus Scope: Focus Management Group was engaged to analyze its operations and make improvements to increase efficiency and restructure debt.
Tasks Performed:
- Evaluated store, online sales, operations and key drivers to improve performance
- Developed the financial forecast and a weekly cash forecast to enable management to anticipate future cash needs
- Identified cost savings resulting in an improved EBITDA of 30% over existing trends
- Developed a comprehensive plan to monitor operating performance
Results:
- Successfully restructured debt obligations with the Company’s lender
- Both management and the lender and were able to utilize a monitoring plan which gave clear direction in inventory reduction and profit improvement.
- Focus’ expertise in retail operations and lease negotiations provided added value to the company’s management team.