KITCHEN CABINET MANUFACTURER
INDUSTRY – Manufacturing
COMPANY – A manufacturer of kitchen and bath cabinetry selling its product through a network of dealers throughout the US.
PROBLEM – After the 2008 recession, operating in the consumer building industry, this company’s sales had plummeted by approximately one third. This resulted in many years of losses totaling $6 million. These losses left the company with only 6 months of remaining cash while still operating at a cash loss.
RESOLUTION – We acquired a control equity position in the company and immediately went to work. We created and implemented several operational changes to reduce operating costs while at the same time improved product quality. We also made changes which made it easier for its customers to order and do business with the company. The company now produces over $2 million in annual EBITDA on essentially the same level of revenues it once loss millions of dollars.