Retail Store Fixtures

Retail Store Fixtures

Roles
Chief Restructuring Officer, Interim COO
  • Deployed lean manufacturing methods 

The company was a $140MM roll-up of eight companies that produced high-end, retail store fixtures. The company suffered from declining revenues and EBITDA dropped to nearly zero with a balance sheet containing over $100MM in debt. The sponsor equity group successfully negotiated an out-of-court restructuring significantly cutting debt in exchange for limited equity. CR3 professionals were retained as CRO and facilitated a multi-pronged operational improvement plan. The results included successful termination of two leases, saving the company over $6MM in future payments, reduced manufacturing lead time, streamlined corporate financials, boosted employee morale, and the elimination of nearly $12MM in annual fixed costs.

The Situation

  • $140MM roll-up of eight companies that produced high-end, retail store fixtures headquartered in St. Louis with facilities in five major cities
  • Company suffered from declining revenues and economic downturn; market downturn led to retail store chains curtailing new store openings; retail bankruptcies and restructurings caused lower orders
  • EBITDA dropped to nearly zero with a highly leveraged balance sheet containing over $100MM in debt; sponsor equity group negotiated out-of-court restructuring cutting debt in exchange for limited equity

The Work

  • CR3 professionals were retained as CRO, COO, and various interim management roles to improve operating performance and increase EBITDA
  • Assessed enterprise, overseeing multi-pronged effort to improve productivity, rationalize floor space in production and warehouse facilities, standardize IT systems, create common business processes and improve executive team’s performance
  • Closed one plant, auctioning off tools and equipment
  • Reorganized largest facility and hired new management; restructured another plant around a customer-focused, team structure
  • Revitalized company newsletter, improving communication, boosting morale and increasing employee involvement
  • Negotiated the termination of two leases, saving the company over $6MM in future lease payments at a cost less than 5%

The Results

  • Deployed lean manufacturing methods improving productivity, cutting scrap, and reducing manufacturing lead time
  • Organized “common process” teams across all sites for quoting, design engineering and installation to share best practices, improve the customer experience and decrease costs
  • Selected and implemented common IT system streamlining corporate financials
  • Eliminated nearly $12MM of annual fixed costs and 40% of space

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