Consumer Food Company

Client

This privately held holding company operates three substantial natural and organic food brands. The Company produces, distributes and markets natural and organic foods and has annual sales of approximately $60 million.

Challenge

The Company faced an inventory write-down of approximately 25 percent. Internal financial controls had deteriorated, the Company had exhausted its credit line, and operating results were well below plan. To pave the way for future growth, the Board of Directors terminated the CEO, CFO, VP of Finance and COO and engaged a Bridge professional to assist in the turn-around of the business.

Solution

Assuming the roles of CFO and COO, Bridge quickly enhanced internal financial and reporting controls and implemented a series of improvements utilizing its improvement methodology. The improvements focused on: revenue enhancement, primarily through selected price increases: asset utilization primarily focused on inventory turn-over; and cost reduction, primarily focused on general and administrative expenses.

Results

Inventory turnover increased by 100percent, year-over-year sales growth grew by approximately 50percent, and year-over-year general and administrative costs fell by approximately 50percent, leading to a $2 million improvement in operating earnings. In addition, the primary equity sponsor acquired a company of equal size. Bridge managed the integration efforts, and within 10 weeks had integrated all systems, business processes and job functions, substantially eliminating the target company's corporate office.