publisher of children's books, cookbooks specialty books and magazines

$160M Revenue

Company Overview

Our client is a publisher of children’s electronic books and cookbooks and other media titles.

The books are sold to major national retailers and distributors, domestically and internationally, in over 30 countries.

The Company has revenues of approximately $150 million and has license agreements with many of the top children’s licensors.

Engagement Overview

The Company had incurred significant operating losses for several years and was in very tight liquidity during its seasonal  sales peak period. Sales are very seasonal and result in  significant  working capital investments in inventory and accounts receivable.

The Company’s lender proposed a reduction in its line of credit facility due to poor financial performance.

FDP was retained to review the Company’s financial forecast and assist management in preparing an operating plan.

Fort Dearborn identified and implemented nearly $13 million in profit improvement initiatives to restore profitability:

–Reduction in force to align their operating cost structure with reduced revenue levels;

–Shut down of an unprofitable business segment;

–Initiated  plan to reduce the volume of returns from customers;

–Shutdown a warehouse operation; and

–Reduction in promotional, warehousing and other operating expenses.

Assisted management in realigning key management within the sales department.  Identified new candidate for VP Sales with whom we restructured the department.

Results

Identified and implemented approximately $13 million in strategic and tactical initiatives to restore profitability in the subsequent fiscal year.

Reduced inventory levels 15% by selling through slow moving inventory and reducing customer returns.

Negotiated  a revised line of credit facility with the existing lender and obtained a new foreign receivable credit facility.

Stabilized the Company, which allowed them to be sold a year after the engagement, at a significant cash flow multiple.

FDP News

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Apr - 22

Fort Dearborn advises HF Foods Group, Inc. - Great Wall Seafood

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Dec - 21

Fort Dearborn Partners advises Foodservice Provider

Fort Dearborn Partners, Inc. served as the exclusive financial advisor to an Illinois-based foodservice provider and refinanced $17,500,000 of debt.

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