Millwork Company

MILLWORK DISTRIBUTOR

The Crisis

A large value added distributer of millwork providing products to the commercial and residential building industry found itself losing money due to several unprofitable building contracts it agreed to supply. The company’s bank wanted out and creditors were filing lawsuits to recover their money.

Our Swift Action and Results

  • Reduced the secured debt level from $1.9 million to $700,000 without the use of bankruptcy
  • Restructured the balance sheet and renegotiated both capital and operating leases which provided a level of debt service that was more aligned with the company’s cash flow
  • Implemented several operational changes including decreasing expenses and increasing throughput of value added products
  • Re-engineered a strategic operating plan for renewed profitability and sales growth
  • Improved collections of accounts receivable and eliminated unprofitable customers
  • Managed, moved and integrated the acquisition of a competitor into the company’s operations
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