The Company is a manufacturer and marketer of  metal, public storage buildings, building storage conversion systems and related storage products in North America.  The Company also has two additional operating units.

The Company operates a metal roll-up door company, selling to door dealers, retailers and various parties in the public storage arena

The Company also operates a division that sells and constructs buildings and mobile units used by fire departments as training facilities.  The Company sells to municipalities, military and other government entities.

An economic downturn and the inability of customers to secure financing to purchase and construct public storage projects, led to a 50%+ sales decline on the heels of an ESOP-led leveraged buyout.  At the time of the engagement, current operations could no longer support required debt service.

FDP was initially engaged to perform a “high-level” review of management’s plan, to return the Company to profitability:

–FDP worked with management to initiate additional cost cuts to reduce break-even;

–FDP negotiated relief on debt service from the Company’s senior and subordinated debt lenders;

–Recommended exit from non-core business unit; and

–Performed valuation and exit strategy analysis, comparing a sale to a wind-down, ultimately gaining acceptance of an “operate and hold” strategy.

Working with the Board and lenders, FDP was selected as the Chief Restructuring Officer for the Company.  Changes made include:

–CEO stepped down; provided interim CEO services, including direct involvement with customers, vendors and the union;

–Restructured sales and engineering departments into project management teams to reduce “silos”;

–Brought focus to customer service and error reduction efforts (“cost of quality” being addressed);

–Initiated change to leadership in engineering department and in fire training division;

–Targeted inefficiencies in manufacturing, and started lean initiatives;

–Developed incentive plans for all office employees, including revised sales force incentive plans; and

–Led efforts to grow conversion product line to address the growing opportunities from increasing vacancies in retail, industrial and commercial real estate.

FDP changed the “stodgy” engineering-driven Company culture to a customer-focused environment;  improved willingness of employees to embrace change and explore new markets and opportunities.

Secured support of senior and mezzanine lenders, totaling approximately $30 million, including significant concessions on required principal and interest payments.

Gained Board and lender approval for acquisition of west coast competitor.

Initiated outsourcing business model to improve competitiveness in coastal and southern markets.

Recruited senior executives, including new CEO, head of engineering, and expanded sales force.