Challenge
The Client is a European leader in the furnishing sector for ice cream parlours, bars, pastry shops and restaurants. Following take-overs and reduction in revenues it identified the need to review its development plans trying to find a new organizational, economic and financial structure.
Intervention
The company asked us to work alongside it in its industrial reorganization and financial restructuring. We responded with a three- year business plan.
- Focus on core business.
- Recovery of efficiency through production optimisation.
- Reduction in personnel with reorganisation of business functions.
- Closure of non-profitable business areas.
- Financial restructuring through consolidation of short-term debts and renegotiation of mid-term debt.
Results
Economically speaking, the Group has implemented the interventions to recover production efficiency and resize the organizational structure, in line with the revenue levels of the global market. It has achieved profitability and cash flow.
Financially speaking, the agreement with the credit system (also the result of the new cost reduction and profitability recovery strategies already activated) will restore normal operational conditions.
