CHALLENGE

Supply chain pricing pressures and the failure to pass along cost increases led to severe liquidity constraints as the company approached a major debt maturity.

The organization required immediate financial leadership to stabilize operations and preserve value amid liquidity challenges and leadership transition. The company:

• Faced the departure of a CFO lacking turnaround and restructuring experience.
• Had a Chief Restructuring Officer (CRO) focused on cost reduction and business model changes.
• Suffered from insufficient liquidity to meet vendor payments, fulfil customer orders, and address upcoming debt obligations.

OUR ROLE

ETONIEN was engaged to provide an experienced Interim Chief Financial Officer to stabilize liquidity and support turnaround efforts amid post-pandemic financial strain.

SOLUTIONS

ETONIEN’s Interim CFO was tasked with:

• Managing tight cash flow and maintaining liquidity visibility.
• Strengthening vendor communication and preserving supplier relationships.
• Ensuring timely, accurate monthly close in collaboration with the Controller.
• Liquidating excess inventory and selling surplus production equipment to generate cash and restore stability.
  

OUTCOME

• Led the auction and disposition of warehouse equipment to improve liquidity.
• Relocated warehouse operations from Nevada to California and Mexico to reduce costs and improve efficiency.
• Oversaw monthly close and financial reporting, restoring discipline and visibility.
  Collaborated with lenders to manage tight cash flow and prepare the business for debt restructuring.