MorrisAnderson Saving a Company under Criminal Investigation

Dell's Maraschino Cherries

Brooklyn, New York


$20 million Cherry Processing Operation. $6 million debt

  • Owner caught growing Marijuana in facility by City Government Officials
  • Owner commits suicide, leaving company with no leadership
  • Bank concerned that situation could unravel leaving loan at risk
  • Company negotiating with Government on settlement as well as keeping business operating
  • Customers very concerned with situation and impact on brands
  • All institutional knowledge was with owner
  • All relationships with customers and vendors were with owner
  • District Attorney is very concerned with the environmental breaches found in the company that led to the search warrant
  • Company had relied on City grants that were cancelled
  • Accounting records incomplete and difficult to create
  • Bank required refinancing


  • MorrisAnderson Principal named Chief Restructuring Officer
  • Restructured management, creating specific responsibilities for each family member based on experiences within company
  • Met with government officials to discuss environmental concerns. Hired Environmental Consulting Firm to perform audit and negotiated settlement with government
  • Met with Key Accounts and Key Account Rep Groups to provide confidence that the new management team was in place and responding to needs
  • Updated accounting policies and procedures


  • Company maintained 95% of Key Accounts
  • Company settled charges with DA and paid fine after refinancing of loans
  • Company was able to refinance debt
  • New Management Team maintaining inventory levels and succeeding in on time delivery of products
  • Diversified management team allowed specialization of duties and did not require one individual to be responsible for all aspects of company
  • Reduced procurement costs by 15%
  • Accounting reports filed monthly within 20 days of month end and numbers are accurate and defensible