Restructuring Advisors

Food Services – Manufacturing and Distribution

Industry: Food Services – Manufacturing and Distribution
Revenue: $150 million
Region: Mid West
Services: Interim Management with Operational and Financial Restructuring

The Challenge

Our client completed the acquisition of a complimentary company two years earlier and had not realized the results originally projected. The acquired company was losing money, market share and several members of the senior management team had left to work for the competition. Restructuring Advisors was engaged to turn around the company’s performance, conduct a market analysis of their product offerings and to remedy operational issues that were behind the loss of key people in the organization.

Our Actions

The Restructuring Advisors senior consultant assumed the responsibility of General Manager reporting directly to the CEO. Subject matter experts from the Restructuring Advisors team were assembled to participate on interdisciplinary teams to quickly identify both obstacles and solutions. Operational improvements in the administrative functions as well as on the manufacturing floor were put in place to reduce overhead, eliminate waste in materials and time, lower inventory levels, shrink lead times and lower costs. Competitive product reviews and major customer visits were completed with recommendations to the parent company on product planning.

The Results

The total number of products the company offered was reduced by 40%. These reductions simplified the manufacturing engineering and production processes, resulting in a cash gain of $625,000 from inventory reductions. The products which remained were enhanced with features found to be important to the client’s customer base. The company was both financially and operationally stable and were able to produce a product desirable to the marketplace. The acquired firm achieved level of profitability that met the acquisition objectives of the parent company.