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$15 million revenue; private; $5.0 million credit facility |
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Background:
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The Company's business had shifted over the years becoming concentrated in a small
number of large retail customers. Larger customers were demanding increased levels
of service at increased cost to the Company. Competition was increasing from foreign
sources who were using lower cost labor. Margins were under intense pressure.
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Result:
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Wimmer Associates conducted an assessment of the Company and developed a strategy
to successfully re-position the business using foreign manufacturing of imported product
at substantial labor cost savings. Domestic operations were scaled back to further
reduce cost but kept intact in order to provide quick delivery for critical orders
requiring very short lead times. Working with foreign manufacturing sources, the
Company opened up opportunities for additional product lines to help smooth the
peaks and valleys caused by seasonality. Margins and cash flow improved significantly.
The Company continues to reduce its debt burden. WA continues as a Board advisor.
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