Practice Area: Operational Turnaround and Strategic Investor
Industry: Children’s apparel and accessories design and
manufacturing
Location: Pacific Northwest
Client: Company
Role: Financial and strategic advisor
Turning Point’s principals were introduced to the company and its
owners by the senior lender to the company. The bank had ceased
funding the company against its line of credit after the company
experienced a loss and was out of compliance with its loan
covenants. The bank had lost confidence in the management of the
company to turn the operation around and effect the changes needed
to bring the loan back within its prescribed standards.
Turning Point was able to use its deep understanding of the
wholesale distribution business to the company’s advantage in this
situation. Our consultants evaluated the entire supply chain for the
company and were able to identify a number of key steps that needed
to be implemented in order to reduce inventories, reduce cost of
goods sold, increase inventory turnover and maintain real time
visibility to the entire order flow. Upon the implementation of
these steps by the company with Turning Point’s assistance, the
banking relationship was stabilized.
We also were able to identify a critical business partner for the
business in this process. Over the course of the next several
months, this relationship was cemented by the negotiation of a
strategic investment in our client. Our role in structuring and
negotiating the terms of the investment resulted in a return to
growth and profitability for the client and a normalization of the
banking relationship.