A closely held and widely known pizza manufacturer with a 60,000 sq. ft. custom-built manufacturing facility, supplying food and gift products to the fundraising industry since 1983, finds itself on the verge of a Chapter 11 filing after years of mismanagement.
This once profitable organization with approximately $30 million in sales had dropped, over a five-year period, to $13 million in sales, with year over year operating deficits.
Struggling with substantial loss of business, the formerly family-managed company, was hemorrhaging cash, significantly over-advanced with its long-term lender, had underutilized real estate holdings, a totally ineffectual sales force, and dismal operating management systems and processes.
As Interim CEO, assessed the viability of the old business model and exited unprofitable food manufacturing and logistics business segments.
Developed and established profitable production and overhead costs and an alternative food manufacturing business model.
Hired a manufacturing expert to implement lean concepts and manufacturing standards from purchasing, warehousing and production to FOB delivery.
Improved financial analysis and reporting by adding an experienced CFO and upgrading substandard accounting and manufacturing software systems.
Re-established critical vendor, supplier and landlord relationships.
Re-engaged core management team from operating in isolationist silos.
Reduced overhead by $3.5 million.
Successfully negotiated two forbearance agreements.
Passed an independent AIB food manufacturing assessment with a score of 890 out of 1000.
Successfully negotiated brand and product license agreement that led to continuation of product line under new ownership.