14 October 2008

Case Study

Project Jean - Turnaround Management

Successful retail group that expanded too rapidly
Strong brand with 12 locations
Significant trading losses
Working capital crunch

Key issues
Finance covenant breaches
Cash flow crisis
Bank was "under water" and refinancing was not an option
Poor working capital management
Lack of management depth
Core business still viable

5 Phases
Stabilise the business
Strategic review and turnaround plan developed
Close unprofitable/unsustainable outlets - stakeholder negotiation was key!
Focus on core stores and "grind it out"
New growth after pruning

Cash flow crisis averted
Stakeholder relationships restored
Tracking 80% + increase in same store sales
$1.1 million improvement in net profit

Vantage Performance
Turnaround Management Specialists

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