Case Studies

CRO Services for Cherry Processing Company Under Investigation

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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Home·CRO Services for Cherry Processing Company Under Investigation

The Situation

$20 million Cherry Processing Operation. $6 million debt.

  • The owner was caught growing Marijuana in the facility by the City Government Officials.
  • The owner commits suicide, leaving the company with no leadership.
  • The bank is concerned that the situation could unravel, leaving the loan at risk.
  • The company is negotiating with the Government on a settlement while also maintaining business operations.
  • Customers are very concerned with the situation and its impact on brands.
  • All institutional knowledge was with the owner.
  • All relationships with customers and vendors were handled directly by the owner.
  • The District Attorney is very concerned about the environmental breaches found in the company that led to the issuance of the search warrant.
  • The Company had relied on City grants that were cancelled.
  • Accounting records are incomplete and difficult to create.
  • The bank required refinancing.

How We Advised

Our expert was appointed as the Chief Restructuring Officer.

  • Restructured management, creating specific responsibilities for each family member based on experiences within the company.
  • Met with government officials to discuss environmental concerns.
  • Hired an Environmental Consulting Firm to perform an audit and negotiated a settlement with the government.
  • Met with Key Accounts and Key Account Rep Groups to provide confidence that the new management team was in place and responding to needs.
  • Updated accounting policies and procedures.
  • The Company maintained 95% of Key Accounts.
  • The Company settled charges with DA and paid a fine after refinancing of the loans.
  • The Company was able to refinance debt.
  • The New Management Team is maintaining inventory levels and succeeding in on-time delivery of products.
  • A diversified management team allowed for specialization of duties and did not require any single individual to be responsible for all aspects of the company.
  • Reduced procurement costs by 15%.
  • Accounting reports are filed monthly within 20 days of the end of each month, and the numbers are accurate and defensible.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Investigations and Litigation Support 
When an investigation or litigation involves a company in financial distress, we help uncover the truth behind the numbers, recover assets, and navigate complex legal landscapes. We combine forensic accounting, fiduciary services, and litigation experience to expertly guide business owners, stakeholders, lenders, creditors, regulators, and counsel seeking recovery in distressed situations. 

 

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

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