Restructuring Advisors

Papyrus

Company: Papyrus
Industry: Retailer & Wholesaler of greeting cards and stationary
Region: Nationwide – San Francisco based
Size: Middle market
Expertise: Strategic Cost Savings and Operational Restructuring

The Challenge

Jim Burritt, founder of Restructuring Advisors and a colleague were engaged by the Chairman of the Board as the company had not met earning expectations. While profitable and growing, Papyrus experienced a slower ramp-up than expected in their wholesale business to compensate for the loss of a major customer. In addition, inventory carrying costs were extremely high. Working with the Board of Directors, our team helped identify a number of specific financial targets. Also, a series of parameters were set in place to determine a successful outcome:

  • Papyrus needed to meet all of its future goals, including those established by their financial partners – no excuses;
  • A plan to deal with excessive inventory and dilution was absolutely necessary as both factors were robbing the company of cash.
Our Actions

A cross-functional group identified as key contributors by the Board of Directors were brought together and the CEO outlined the overall goals for the company. Our team then conducted a four day cost reduction/business process improvement program bringing together specific actions Papyrus needed to take to control costs, reduce SKU’s, and eliminate excessive shrinkage in retail operations.

The Results

At the end of the four day session, $8.0 million in potential savings had been identified, a level that was 30% above the stated goal. Savings were realized across the company and had an immediate (reduce seasonal inventory) impact through annual savings of SKU reductions, product design flow improvements and changing shipping methods to company owned retail locations.