Beginning in 2009, due to the economic downturn, the Company experienced declining revenues and decreased profitability.
While the Company implemented cost reductions to improve its operating performance, it operated with tight liquidity while experiencing an increase in business volume as the economy improved. Despite improving business volume, the Company’s existing lender preferred not to increase its exposure or provide additional credit to fund the growth. Additionally, the Company was operating with an interim management structure.
Fort Dearborn assisted the Company in developing strategies and tactics to improve profitability and cash flow, improve its management team and Board governance and led its efforts to refinance its senior debt with a new bank. With Fort Dearborn’s assistance, the Company reduced its inventory while increasing its sales by almost 20%, replaced both its interim CEO/Chairman of the Board and its CFO and implemented sales and production profit improvement initiatives. These efforts resulted in over $2.0 million of EBITDA improvements and over $2.0 million of inventory reductions.