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Business Strategy
Business Turnaround
Investigations and Forensic Accounting
Business Reorganization
Creditor Representation
Situation:
This established women’s clothing retailer
had experienced many years of declining sales growth and profitability.
The CEO required a revised strategic plan that not only restored growth,
but also creditability with numerous stakeholders such as board members
and trade creditors.
Our Solution:
An initial assessment of the business was undertaken
and we quickly identified five critical success factors necessary to restore
profitability. After identifying the capabilities and capital necessary
to implement the revised strategy, a detailed implementation plan was
developed and, over a 1 year period, executed. The business has now returned
to profitability and the management team has freshened the brand in the
minds of their customers.
Situation:
This company had suffered three consecutive
years of seven figure losses. Management was in disarray and had lost
the confidence of the Board. The company’s bank was becoming concerned
and demanding action.
Our Solution:
We provided interim management for nine months
during which we identified several specific courses of action to improve
operations, including selective price increases, dropping of unprofitable
products/product lines, cost cutting in every area of the business, identification
of new sales opportunities and a permanent replacement of executive management,
leading to an operating profit for the first time in three years.
Situation:
A theft ring was operating out of the warehouse
of a flooring products distribution company. The fraud was endemic throughout
the organization with accomplices operating in the customer service, will
call, and inventory control areas.
Our Solution:
We immediately upgraded the security, augmenting
it with our own team, ended the perpetrators’ access to the computer
system, and stopped the outflow of merchandise. Our team made and videotaped
two covert buys client merchandise from company employees, and obtained
a written confession from an accomplice in the order-entry department.
We made five criminal referrals to the Los Angeles County Sheriff’s
Department.
Situation:
A privately held general contracting company
was out of cash and in the danger of defaulting on over $25 Million of
payment and performance bonds. Subcontractors on several jobs were unpaid
and the company was having difficulty meeting payroll.
Our solution:
After our initial analysis indicated that it
was unlikely that the company would survive and we advised the company
to file for Chapter 11 relief. We assisted the company by: leading negotiations
among the subcontractor/creditors, convincing the surety and the owner/clients
to complete the jobs and getting the bonds exonerated with minimal exposure
to the company. We identified several actionable causes against the company’s
auditors, and assisted litigation counsel in the preparation of a malpractice
complaint that resulted in a significant verdict.
Situation:
A national bank was offered a seven figure short
payment on a business loan. The bank had minimal information beyond that
supplied by the company to evaluate the offer.
Our solution:
We put a team into the company which discovered
fraudulent conveyances to insiders far exceeding the amount of the bank’s
loan. Moreover, the bank’s credit line had been drawn down to make
some of those payments. When confronted with this information, the company’s
officers made arrangement for payment in full of the company’s obligation
to the bank.
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