Candy Manufacturer and Distributor
The $17 million second generation, family owned and operated company, moved and expanded its manufacturing facility to pursue a growth strategy taking on a substantial amount of debt. In addition to these costs the company's overhead structure, primarily employee and ownership related costs, continuously grew faster than its revenue could support. This led to several years of significant losses jeopardizing the independence of the business.
An action plan was developed recommending the placement of professional management into the senior positions of the company. Additional recommendations were made for reduction in overhead costs, dropping of certain product lines that were identified as being unprofitable, and additional concentration in sales and marketing on the company's higher margin product lines. The successful implementation of these recommendations returned the company to proftability.
Subsequently the company was able to restructure its debt obtaining a $10 million package that reduced its costs, increased its flexibility, and provided additional capital for further growth.
Ice Manufacturer and Distributor
This $2 million manufacturer of ice had been operating at a slight loss and a cash neutral position for several years. A tornado directly hit the company's facility completely shutting itdown. This combination of events led the senior lender to ask that its loans be repaid.
A rapid analysis of the operations of the company was completed with recommendations to downsize the company. We negotiated the contracts for the repair of the buildings determined essential, and the demolition of all non-essential structures. The company, with the support of ARP Services, LLC was able to begin manufacturing within a week.
We provided the analysis and negotiated with the insurance company for both the property claim and the business interruption claim obtaining in excess of $450 thousand. We were also able to obtain a subsidized emergency loan from the Federal Emergency Management Association of $600 thousand allowing the company to retire the debt of its senior lender.
After stabilizing the operations we provided assistance in the sale of several unprofitable routes allowing the company to operate profitably.