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.
- Morris Anderson (MA) was hired by the shareholders to conduct a comprehensive financial and operations viability assessment ofthe 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.
- 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.