Petroleum/Convenience Store Retailer

Company Overview


•  The Company is a $140 million operator of 40 owned and leased petroleum/convenience stores that was underperforming in certain locations.

Engagement Overview

Fort Dearborn assisted the Company with several initiatives including:

•  Implemented a price increase for in-store merchandise.

•  Reduced payment terms with the two largest suppliers and negotiated additional vendor discounts and incentives.

•   Developed food service strategy.

•   Reduced number of SKU’s in inventory.

•  Installed automated perpetual inventory system with radio-frequency scanning (RF) capabilities.

•  Sold 2 underperforming stores and terminated land lease.

•   Evaluated management team and upgraded certain members of the management team.

•  Prepared financial forecast, factoring above strategic and tactical operating plans and unusual working capital unique to the industry.

Results
•  Improved profitability by $500,000 annually.

•  Refinanced loan facility with existing lender.

•  Generated over $3 million of EBITDA, generating approximately $1.8 million of free cash flow after CapEx and debt service.

•  Provided management with the capital and senior debt to acquire new stores.

•  One of our consultants serves on the Company’s advisory board.