Company Sold with Help from Ohio Department of Development

Consumer Products & ServicesLitigation SupportPerformance ImprovementTurnarounds & Restructuring

130M

Annual Sales

11M

in Debt

Norwalk Furniture, Norwalk Ohio

Challenge

Multi-plant furniture manufacturer with 55 independently owned retail franchises and national retail customer base. $130 million in annual sales. $11 million debt.

  • 4th generation family-owned business
  • Losing $500K per month
  • The slowing economy, 3 year decline in home sales, and tighter bank mortgage and equity-loan practices caused Norwalk Furniture Company’s business to experience dramatic revenue declines.
  • The company’s senior lender saw the company’s profits decline 71%, resulting in them taking a hard stance with respect to extending any additional credit to Norwalk Furniture Company.

Solution

  • Morris Anderson (MA) was hired by the shareholders to conduct a comprehensive financial and operations viability assessment of the entire company.
  • MA quickly developed a restructuring plan to reduce annual expenses by $15 million and took over the interim positions of CEO, CFO, COO, and CRO for the entire corporation.
  • Vigorous negotiations were entered into with the senior lender to discount Norwalk’s loan, as well as with potential buyers for Norwalk.

Results

  • Discussions with Ohio’s Department of Development resulted in a $2 million low-interest loan offer to any potential buyer, helping to eventually find a buyer for the Ohio division, which saved 450 jobs.