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Industrials Turnaround

Case Study

Interim CFO/Restructuring

A manufacturer of luxury casino seating products, with 53% share of the U.S. market was challenged with post-Covid supply chain pricing issues, and failure to pass along those price increases, creating liquidity issues amid an upcoming debt maturity.

Client Challenges

  • Outgoing CFO was not equipped to handle turnaround and restructuring responsibilities
  • Sponsor brought in a CRO to focus on cost cutting and business model changing
  • Based on cash position, the business was not able to meet vendor payment obligations, customer delivery schedules, and upcoming debt obligation

Project Requirements

  • Manage a tight cash situation
  • Manage calls from vendors who are not being paid on time
  • Work with Controller to ensure timely and accurate delivery of monthly close
  • Mange liquidation of excess inventory, sell off excess production equipment

Project Deliverables 

  • Led the auction and disposition of the warehouse equipment
  • Moved location of warehouse operations from NV to CA and Mexico
  • Oversee monthly close and finance reporting
  • Work with lenders on tight cash liquidity and prepare business for debt restructuring