THE CLIENT
A national branded consumer products company headquartered in Southern California with operations throughout the country. Products are distributed to retail locations in climate-controlled trucks to more than 5,000 retailers across North America.
THE SITUATION
Sales were dramatically impacted by the fall-off in consumer demand requiring significant downsizing of operations and cost controls. The business was in a turnaround situation and looking for out-of-court restructuring. A complicated lender/bank group situation required the take out of one lender and the restructuring of a $100 million credit facility. The industry had experienced liquidation of many competitors over an extended time frame.
THE SOLUTION
Avant Advisory Group was brought in restructure the Company’s debt and to help manage the relationship between lenders and shareholders. We developed and actively facilitated an operating plan designed to downsize operations, reduce operating costs, generate working capital, and rebuild the trust of lenders and shareholders.
THE RESULTS
Business operations were stabilized and the cost structure was downsized to support rebuilding the sales base. Equity ownership was preserved for the existing shareholders. Avant renegotiated and downsized the credit facility with the nursery’s existing lenders for a long-term, 3-year credit facility with more favorable covenants and terms.