Company

At the request of the special credits department of a large bank, the restructuring specialists of Gwynt have performed a quick scan at a European supplier of textiles. The company develops and sells fabrics to the interior and design sector.

Situation

The financial results were under pressure due to a combination of internal and external factors. The bank asked for our opinion regarding the feasibility of the budget, cash position and financial accounting organization. The scope of the scan also included an assessment of how to grow the top line revenues and improve the bottom line results, taking the challenging market circumstances into consideration.

Approach

The Gwynt team executed the quick scan in four weeks and worked closely together with the shareholder, CEO and management team. We looked at market developments, sales opportunities, the collection development process, product differentiation and competitive position, sales channels, costs, sales force effectiveness, cash flow forecasts and the 2015 budget. We also organized and facilitated a strategic-commercial workshop during which management actions and opportunities for revenue growth were identified and assessed.

Result

The company implemented several organizational changes immediately after the quick scan. Sales objectives were clarified and roles and responsibilities were adjusted and discussed with several key managers (who, what, why, how, when).Clear targets were set, including increased penetration and conversion rates in retail channels, loyalty programs abroad, the development of category management, and improved financial forecasting and reporting.

Due to clear business improvement priorities, the bank was willing to continue financing. The company has the opportunity to strengthen its market position and to improve its financial results in 2015. If needed, Gwynt will provide additional advice and support during the implementation of the plans.