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Case Study

Action Sports Footwear and Apparel Company

Entrepreneur founder designs, and globally sells and distributes direct-to-consumer action sports footwear and apparel.

Revenue

$50 million

Industry

Retail, Apparel, Wholesale Distribution

Services Provided

Turnaround & Business Restructuring, Capital Solutions

Situation

The company was unable to compete with major branded footwear companies which aggressively entered the market segment seeing the profitable niche. Larger competitors outspent the company on individual sponsorships, event hosting, and other marketing vehicles. The company had been facing declining sales volumes for several years and was out of formula with its lender. 

Accomplishments

  • Prepared a 13-week forecast to assess liquidity and for use as a singular point of focus across the organization. The company had been using incomplete and inconsistent financial reports to make department-level decisions which were not consistent with borrowing and cash resources.
  • Assisted and provided guidance to the CFO and treasurer by analyzing timing of cash receipts and prioritizing disbursements across the global platform. Strategized with the CEO and the head of procurement about design, order and delivery schedules which were interdependent with outstanding accounts payable balances.
  • Provided transaction support to replace the incumbent lender with a new credit facility.
  • Served as the chief restructuring advisor to the owner entrepreneur CEO, the general manager, and two former officers (the President and the CFO) who were still functioning as “consultants” to the CEO.
  • Supported the operational restructuring of the company which included the consolidation of brands into a more focused platform with significantly reduced operating costs.