Company Overview
The Company is a leading online retailer of a wide selection of sports optics, tactical and military gear, hunting gear, and professional grade eyewear.
Company offers hundreds of thousands of products from more than 800 top brands in hundreds of specialty categories including outdoor sporting goods, hunting and tactical apparel and shooting accessories.
Engagement Overview
After failure to achieve forecast results, the Company violated a loan covenant with its senior lender. Additional softness in sales in combination with logistical challenges with a third-party fulfillment operation resulted in additional revenue declines.
As a result, the Company engaged FDP to:
–Prepare a 13-week cash flow forecast,
–Review and assess management’s financial forecast, and
–Prepare a Summary Action Plan to address operating losses and liquidity challenges.
FDP analyzed the overall overhead structure and current balance sheet situation and developed a plan that would:
–Reduce inventory levels by $10 million, creating needed liquidity,
–Reduce overhead expenses by nearly $3 million, principally through payroll savings, advertising savings, and freight savings.
Based on the aggressive actions take, the Company returned to profitability.
Results
FDP generated needed liquidity through an aggressive inventory reduction strategy.
Overhead expense structure was reduced significant to better align with current and future revenue volumes.
Company successfully returned to profitability after incurring significant operating losses.