Case Studies

Chief Restructuring Officer for Magazine Distributor

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

Read More close Created with Sketch.
Home·Chief Restructuring Officer for Magazine Distributor

The Situation

$150 million Magazine Distributor to a large retailer operating in 10 states with 3 Distribution Centers. $40 million debt.

  • The magazine industry has been experiencing a decline of 8% annually for several years.
  • Retailers forced pricing down and converted magazines to pay-when-paid consignment inventory.
  • Distributors had to pay for all magazines, but only sold through one-third of the product, and received delayed credit back for two-thirds.
  • The Company lost control of inventory accounting and grossly overstated inventory values, making it hard to detect that operations were losing money for years.
  • The Company was almost out of cash and on the verge of being shut down by its publisher suppliers.

How We Advised

Our experts were appointed Chief Restructuring Officer (CRO).

  • Negotiated deals with publishers to only pay for the expected weekly issuance each week in cash, one-third of the total amount.
  • Reduce costs to service and bridge the company to sale.
  • Marketed Company for sale.
  • The Company was sold in 3 separate transactions.
  • The remaining estate was wound down without a legal proceeding, even though unsecured creditors would receive no distribution on their claims.

Key Contacts

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

 

Mark J. Welch, CPA, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 412 498 8258 
[email protected] 

Related Practice Areas

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

Our Experts