ABC Carpet & Home

Summary

Interim Management

New York, NY

Retailer of high-end carpet, furniture and home + lifestyle accessories with co-located high-end restaurants; brick and mortar presence in New York and Florida.

ABC Carpet and Home faced declining sales and profitability, driven by declining foot traffic, online competition and a heavy fixed cost real estate footprint in Manhattan. Due to the high-end nature of its products, the Company had a significant amount of cash tied up in slow moving and aged inventory. The Company was looking to consolidate its brick & mortar footprint, right-size operations and better manage inventory, and secure additional funding to reinvest in the business / an omni-channel service offering.

Key Challenges

Declining Traffic Comps

Oversized G&A Super Structure

Constrained Liquidity

EBITDA and Profitability Declines

Engagement Highlights

Phase I – Assessment of Strategic Alternatives

Performed a business assessment to identify risks and potential liquidity issues associated with the Company’s planned brick & mortar consolidation efforts
Reviewed working capital sources and uses, inventory open-to-buy/purchasing and impact on cash flow
Identified anticipated funding need to bridge to profitability and developed an integration model to consolidate brick & mortar locations

Phase II – Company FA and Operational Restructuring Implementation

Retained as interim COO to help implement the facility consolidation effort, rebranding initiative and go-to-market strategy
Oversaw the open-to-buy purchasing system in order to better manage working capital
Managed cash flow and worked with the CFO to identify SG&A/overhead cost reduction opportunities
Reviewed capital injections from ownership and fielded third-party investment opportunities as they arose

ABC Carpet & Home

Summary

Interim Management

Key Challenges

Engagement Highlights

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