Turnaround
and Crisis Management Assignments
“A
day in the life of a company in crisis is like a month in a healthy company.”
Harvey Kibel, Kibel Green, Inc.
Having
been the CEO of both healthy companies and turnaround situations, it is clear
to us that the above quotation fairly represents the difference in the speed at
which one has to deal with events in a turnaround. Troubled companies are
generally created over many years through bad decisions, poor management and the
inability to react to changing business conditions. Once the company’s
owners or creditors finally take action, the company is in crisis and immediate
action is required on all fronts simultaneously. Such was the case with
almost all of the following assignments. T&Co’s multi-discipline
skills all are put to use in these situations.
U.S.
Experience
In
addition to multi-year turnaround of the Bridgewater Resources Corporation and
its subsidiaries (see Domestic
Case Study), Thornburg's domestic client engagements
include:
- metal
fastener company
- commercial
printer
- movie
theater chain
- industrial
seal manufacturer
- demolition
company
- snack
foods manufacturer and distributor
- pet
food retailer
- jewelry
manufacturer
- wire
products manufacturer
- specialty
chemicals producer
- cement
tile manufacturer
- 54-store
restaurant group
- automobile
and truck lift manufacturer
- plastic
injection molding company
- clothing
manufacturer and retailer
The
companies range from startups facing cash flow problems, to mature businesses
requiring extensive re-engineering and new strategies to cope with rapidly changing
markets. Two companies with large real estate obligations were taken through Chapter
11. Several of the companies were offered for sale after the operations and financial
condition were improved.
International
Experience
International
clients include a steel foundry in Mexico
and the restructuring of a consumer and industrial products marketing company
in Thailand
. Developing countries provide a special strategic planning
challenge. Their business cycles are more extreme and exchange rate fluctuations
can have major impacts on both imports and exports. The Thai company involved
both retail and wholesale sales (see International
Case Study). To cope with rapid changes in the Thai
market, a new MIS and distribution procedures were implemented.
