Service Merchandise, Inc.

Client

The Company was a catalog retail concern with approximately $3 billion in annual revenues.

Challenge

The Company was faced with an increasing cost structure which was hampering its profitability.

Solution

The Bridge Team worked closely with the Company's management to target corporate overhead cost reductions. The Team evaluated reductions in work force and potential outsourcing or eliminating corporate services not essential to core business operations.

Results

Within a sixty day period corporate overhead costs were reduced by $50 million or 23% on an annual basis.