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Case Study: Small Retail Picture FramerCrisis Management, Operational Restructuring, Bankruptcy ConsultingCompany: Small retail "picture frame" chainSituation / Tasks Performed: Excessive capital investments associated with long-term business strategy decisions and poor operating performance led to extreme cash shortages. TRG was hired to immediately stabilize cash flow, negotiate with trade vendors and to develop and implement an operational restructuring plan that would allow for the Company to regain profitability. TRG developed an operating plan for the Company that included closing unprofitable stores and reducing inventory levels. After the plan development phase, TRG then assisted in implementing and monitoring the plan. At the same time, TRG worked with the Company and their equity sponsors to evaluate the strategic options available to them. Results: The Company ultimately filed for Chapter 11 protection. Successful negotiations took place with the senior secured lender and unsecured creditors to put forth a plan to pay a dividend that exceeded that which they would have received in liquidation. The Company was able to emerge from Chapter 11 with the support of its vendors and continues to operate today. Nature of Assignment: Primary: Crisis Management Secondary: Operational Restructuring Tertiary: Bankruptcy Consulting Industry: Retail |
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© Copyright 2007 The Recovery Group, Inc. All rights reserved |
