The Company was a $200 million distributor of foodservice items, packaging and janitorial supplies.

The Company operated out of 7 distribution facilities, including one in the Northeast.

The Company was a previously larger foodservice business being strategically exited over the past 3+ years in order to concentrate on packaging and janitorial and sanitation supplies.

Problems with the implementation of a new ERP system and poor accounting records led to significant under-reporting of losses and bad information.  The loss of a major customer and the inability to secure additional capital led to a liquidity crisis and the inability to purchase needed inventory from vendors, causing the  Company to wind-down operations.

FDP was initially engaged to sell non-strategic foodservice divisions.   FDP sold the Company’s East Coast division, at a premium to book value.

FDP’s detailed review of the system quickly identified the implementation and data irregularity issues:

–FDP created a tactical plan to correct the errors;

–FDP led the “clean-up” of financial records, resulting in the identification of over $3 million in previously unrecorded losses;

–Identified corrective measures for ERP implementation and accounting issues related to inventory costing and receipt errors, transfers between divisions and payables accounting; and

–Recruited a new CFO and worked hand-in-hand in correcting all of the implementation issues.

Met with the bank to discuss the status of the business and negotiated a bank supported wind-down plan:

–Sold two operating divisions as going concerns;

–Developed employee led inventory sales efforts, including sales force incentive plans; and

–Interviewed and assisted in the selection of the inventory liquidation consultant.

Gained approval of the Board and bank to wind-down the operation out of court:

–Sold two divisions as “going concerns” during wind-down; and

–Consolidated divisional AR collections efforts at headquarters, resulting in better than anticipated realization.

Initiated Company led efforts that resulted in approximately $9 million of inventory sales at values near book, leaving only $3 million of inventory for the liquidation sale.