distributor of convenience store and grocery store merchandise and sundries

A $600 million distributor of groceries, convenience items and cigarettes, primarily to Walgreens, C-Stores, Hispanic grocery stores.  The Company also operated six cash and carry stores. The Company’s geographic markets were Illinois, Wisconsin, Indiana, Iowa Michigan and Minnesota.

The Company had been generating losses for numerous years, resulting in underinvestment throughout the organization.

Within weeks of being engaged, the Company was notified that its largest and most profitable customer, who accounted for 40% of sales, would be ending its business relationship in three months.

The Company’s higher warehouse and transportation labor rates and benefits resulted in a cost disadvantage relative to the competition.

Fort Dearborn assisted the Company in developing a customer profitability and financial forecast to plan for the eventual defection of its largest customer.

Fort Dearborn served as financial advisor to ownership in the sale of its Hispanic grocery distribution business and convenience store distribution business.

Fort Dearborn assisted in developing a profit improvement plan resulting in over $2 million in payroll savings and $1 million in other expense reductions.

Fort Dearborn prepared a strategic and operating plan to guide the Company through its transformation.

Ownership decided to pursue the sale of its convenience store distribution business and the sale of its Hispanic grocery distribution separately.  Ownership retained the cash and carry stores.