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Case Study: Textile Finisher and Dyer
Interim Management, Turnaround Plan Development
& Implementation, Business Strategy Development
Company: Largest independent North American dyer, finisher and printer of textile materials for both commercial and military markets.
Situation / Tasks Performed: Excessive leverage resulting from acquisition of the entity coupled with investment for unrealized growth
and poor operating performance led to an extreme cash shortage and loss of lender group confidence. TRG was hired to immediately control
cash flow, stabilize vendors, develop and implement a long-term turnaround plan and negotiate a debt restructure with the lending group.
To ensure accomplishment, TRG served in the role of interim CEO.
Results: TRG's results on behalf of the company include:
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Secured debt of $85 million was restructured, resulting in $35 million converted to
equity with the balance in new performing debt |
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Divisional consolidation and operational restructuring yielding $14 million in annual savings |
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Negotiated with unsecured creditors to obtain support for plan and continued flow of product |
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Completed new computer software initiative to replace a failed system |
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Company results have turned from significant net loss position, in excess of $20 million, to modest profitability, while in a declining market |
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Performance to operating plan has been consistently achieved |
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Follow-on profitability (after TRG exit) is estimated to return to pre-acquisition levels |
Nature of Assignment:
Primary: Interim Management
Secondary: Turnaround Plan Development
& Implementation
Tertiary: Business Strategy Development
Industry: Textiles
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