Motor Fuel Distributor and Petroleum/Convenience Store Retailer

Company Overview

•  A $800 million distributor of motor fuels and convenience store operator that was operating under a severe liquidity crisis. The liquidity issues were due to significant operating losses and capital investment in convenience stores for distribution and retail operations, combined with declining wholesale fuel prices.

Engagement Overview
•  Fort Dearborn recommended strategies and tactics to return to profitability via cost reductions, rent adjustments with store operators and shedding unprofitable operations.

•  Completed distribution business unit analyses (wholesale, consignment and commission based) and store profitability analyses to determine profitable vs. unprofitable operations.

•  Reduced headcount throughout organization.

•  Recommended sale of all or part of the business to provide adequate capital to execute a turnaround plan.

•  Prepared monthly financial forecast and weekly cash flow and borrowing base forecast factoring above strategic and tactical operating plans and unusual working capital unique to their industry.

•  Negotiated an over-advance with senior lender while marketing the Company for sale.
Results
•  The Company’s senior debt was purchased by a third-party that allowed for the recapitalization of the business in order to execute the turnaround plan.