Category: Case Study

Returned store operations to profitability within three months, and back to historical profitability levels within 12 months.

Conducted detailed operational assessment over store controls, procurement, staffing levels, inventory, warehousing, and transportation costs. Completed four-wall profit and product line analysis to prioritize actions needed to drive profitability.

Implemented controls across entire store network for store opening and closing, product buyers, store and headquarter product ordering, receiving, and inventory management. Implemented new product ordering and receiving practices to reduce excess and obsolete inventory, reduced vendor discrepancies causing charge-back and excessive adjustments, and significantly reduced cost of goods.

Worked with procurement department to implement controls and monitoring and reporting over buyer practices and gross margin management. Terminated employees who had taken advantage of weak control environment. Worked closely with core group of store managers to implement across-the-board standard practices.

Completed turnaround in one-year time period and facilitated capital sourcing of $50 million from outside private equity firm, preserving value of founder/entrepreneur’s real estate equity and value in business. Identified and worked with a combination of prospective industry specific and alternative private equity investors to drive up valuation.

Managed Chapter 11 proceeding and helped manage the standardization and process improvement requirements associated with massive turnover of employees.

3,100 of 3,800 employees were undocumented and were scheduled for termination by Immigration and Customs Enforcement (“ICE”) over a 6-month period, requiring the hiring and training of new employee replacements during a Chapter 11 proceeding.