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Maintaining Brand Equity in Times of Crisis

In the consumer brand, maintaining a distribution channel filled with inventory is the most critical aspect to saving brand.

Recently, one of our clients was faced with its major vendor refusing to ship goods and its lenders refusing to advance additional funds. The company and brand was about to disappear, when Kibel Green began its work. I welcome your call to discuss this case, or any of the other services we provide at Kibel Green.

Overview:

With the Client in the midst of cash crisis, the team developed and implemented a plan that:

  • Achieved break-even EBITDA within 2 months
  • Agreed to new lending terms causing additional funding to company
  • Reestablished the flow of shipments from a critical vendor
  • Enabled a sale and the repayment of all debts

The Situation:

An $75MM importer of consumer products was losing $400K per month and faced liquidation. As a result of a significant past due amounts owed to a critical vendor, this vendor had stopped shipping until its account receivable was reduced.

The Solution:

Implemented Turnaround Strategy.

Kibel Green's consultants quickly developed a cash flow forecast and developed strategies to present to lender and the key supplier. The team also worked in parallel with management to identify costs savings and cash flow improvements.

With Kibel Green's assistance, both the lender and supplier gained confidence in the plan and agreed to new terms that resulted in higher borrowings and release of goods by supplier. Sales rose quickly and the company returned to a stable break-even cash flow. Most importantly, the brand and distribution was saved which ultimately allowed for the full repayment of the lender and its vendors and returned capital to its equity.

Today, this brand remains a top position in market segment.

Whether a Company is struggling financially or on the cusp of breakthrough growth, KGI can help. Our seasoned experts work alongside management to solve complex cash flow issues, operational challenges and other business crises. If liquidity or sale is needed, KGI provides a powerful combination of services and expertise to achieve outcomes that cannot be duplicated by other standalone consulting firms.