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.