Case Studies

Turnaround Stabilizes Company International Apparel Manufacturer & Distributor

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

Read More close Created with Sketch.
Home·Turnaround Stabilizes Company International Apparel Manufacturer & Distributor

The Situation

International manufacturer and distributor of moderate-to-high-end women’s apparel (branded and private label). $150 million in revenues. $30 million debt.

  • Management issues developed when three siblings were vying for company control.
  • The Company operated three standalone manufacturing and distribution facilities, each maximizing its individual profit at the expense of the whole.
  • The number of new styles and SKUs was expanded dramatically, often stealing market share from current styles, with little attention paid to profitability and contribution margin.
  • New product design decisions are made on fashion appeal only, with margin considerations ignored.

How We Advised

Our experts became the Interim COO and implemented a new “Rules-of-Doing-Business” and Activity-Based Cost system to monitor margins at all stages of the product life cycle – design, production, introduction, maturity, and phase out.

  • Restructured organization around the most qualified sibling, focusing on profit optimization and financial returns for current and future ownership.
  • Narrowed scope and focus of product line base; built new SKU introductions around the core of highly profitable product lines.
  • Established metric performance measurement, holding key executives responsible for their respective functions of the business.
  • Management resolved control issues, refocused on core business issues.
  • Decreasing margin and profitability trends reversed; 10% profitability increase in the first year.
  • Rationalized product/style SKUs; reduced the number of offerings by 20% which minimized obsolescence write-offs by almost 75%.
  • New product cost systems and merchandising decision thresholds improved margins by 5%.

Key Contact

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

Related Practice Areas

> 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. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

Our Experts