Global manufacture and distribution of parquet flooring
Situation faced:
The Group, based in Zurich, Switzerland had breached its banking covenants and was loss-making. Main markets of Europe and the US were hit by the recession as house building starts and consumer confidence fell. Manufacturing operations in Sweden, France and Switzerland were high- cost and subject to intense competition from Chinese suppliers.
Outcome achieved:
Manufacturing costs and staffing levels were reviewed and process improvements made where required. Other cost reduction programs were agreed and implemented. Reporting improvements were made and cash management processes implemented. A new 3 year Budget was created to support the necessary financial restructuring. The restructuring was agreed and implemented on time, including obtaining all Swiss tax approvals. Overall debt was reduced from £560M to £280M allowing the company time to ride the recession.