COVID-19 challenged the financials of many retailers, including this $1 Bn US wholesaler, licensor and retailer of apparel and accessories.
The client’s board engaged A&M for immediate support managing liquidity and driving operational improvements in order to make it through the pandemic. A&M stepped into interim roles in the business, namely serving as Chief Restructuring Officer and overseeing all aspects of the company’s restructuring. The A&M team also co-led a Transformation Office with the COO to help turn identified savings into results. The A&M team in partnership with the client was quick to action and managed to successfully restructure the business ahead of initial schedule. The restructuring reduced cost by opportunities in supply chain and organizational design of over 15% of operating costs, created over $150 million in permanent working capital benefits and reduced funded indebtedness while raising incremental liquidity. These operational workstreams contributed to the restructuring by helping the business control liquidity during COVID-19, but they were also critical to maintaining business operations during the process. Despite a global pandemic and a restructuring, A&M CRG’s joint-effort with the company’s COO enabled the client to reliably deliver product and services to wholesale customers without disruption.
$150M in permanent working capital reductions without impacting sales; 15% SG&A reduction