Case Studies
J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response
Read MoreThe Company was a $40 million Retail Store Chain specializing in general merchandise and jewelry with multiple locations in Bermuda.
The Company had difficulty integrating the acquisition of its largest competitor. Spiraling freight costs, inadequate inventory management, and unsuccessful general merchandising and pricing policies added to the eroding margins. The Company’s communication with its bank had deteriorated as a result of insufficient management reporting systems, its inability to close its books for 7 months, and the departure of its previous CFO.
Our experts were engaged to conduct a business assessment of the company’s existing operations and to assist the company in developing and implementing a strategic plan to restore its profitability. We acted in the role of interim CFO and secured a new bank line of credit to consolidate debt under a single facility. Our team oversaw the implementation of a new computer system, maintained financial reporting, implemented various cost-cutting measures (including a reduction in inbound freight charges by over $1 million annually), advised on store closings, and managed cash and bank relationships. We directed the implementation of a new inventory warehousing system, which has accelerated the transfer of products to stores and reduced shrinkage. Despite these efforts, the tourist trade was continuing to decline at a rate faster than the Company’s break-even point could be lowered, and the Company continued to lose money, despite its more efficient operations. J.S. Held spearheaded the orderly wind-down of the business to maximize recovery for creditors.
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
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