A privately owned Fabricated Metal Product Manufacturer that had suffered from continual losses year after year.
The company was in a financial crisis and the owner was struggling to make payroll. He also feared the company may be forced to shut down and liquidate as soon as the following week. The company management needed help to determine if the company could continue as a going concern and if so, how to develop and implement an improvement plan. They reached out to Cascade Partners.
Cascade Partners’ Restructuring Team was brought in help. After an intensive 24-hour analysis of recent performance, we identified both strengths and weaknesses within the company which led us to lead an emergency planning session. During this weekend planning session with management, Cascade determined that the company needed to overhaul its operations to significantly reduce costs, while working to retain its still strong customer relationships. A restructuring plan was finalized and implemented the following week, with operating and cash flow models put in place to track progress and measure results. As profitability returned, we provided a long-term performance improvement plan to secure the company’s new profitability sustainability and growth.
The Cascade Advantage
With the guidance and assistance of our Restructuring Team, the company was able to streamline its operations, reducing its workforce by 35 employees. With the implementation of two 10-hour shifts, operating five days a week (instead of 24/7 operations), the company was able to further reduce costs while still improving its on-time delivery and reducing scrap and re-work. As a result, profitability was restored, and a comprehensive continuous improvement plan is now in place to ensure sustained profitability and success.