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Case Study

Midwest Furniture Retailer

Family-owned, Midwest- and mountain states-based furniture retailer with 24 stores.

Revenue

$190 million

Industry

Retail

Services Provided

Turnaround & Business Restructuring, Enterprise Performance Improvement, Capital Solutions

Situation

Transition of family-owned business to second generation was followed by a downturn in sales and profitability. Family members who inherited and were then responsible for managing the business were unfamiliar with retail operations. Because of operating losses and issues related to non-compliance on bank reporting covenants, incumbent lender asked that company find a replacement lender.

Accomplishments

  • Served as Chief Restructuring Officer to the CEO and operating team. Conducted detailed four-wall analysis of stores, including reallocation of resources, staffing, and closure of selected locations.
  • Worked with operating team to standardize sales practices across stores and inventory management programs and help guide revised promotional and advertising programs.
  • Worked with operating team to set up a private label product line that had significantly higher gross margins, leveraging the 70-year-old regional brand.
  • Returned business operations back to profitability within six months and refinanced $20 million line of credit with new bank lender.