Armand Lucarelli Stephen Sandler
(978) 443-7500 (508) 358-7451
armand@capitalrestoration.com ssandler@srkgroup.com
Boston, MA. (October 14, 2003) – Capital Restoration today announced that it had won the Turnaround Management Association’s (TMA’s) prestigious Turnaround Of The Year Award for companies with up to $50 million in sales. Capital Restoration received the award for the turnaround of the Gloucester Company, a manufacturer and marketer of adhesives and sealants sold in home improvement stores.
When Capital Restoration was called in during 2002, the Gloucester Company had a substantial negative cash flow, decreasing sales and margins, contentious vendor relations and was in violation of its loan covenants. It was in danger of having to declare bankruptcy with the associated loss of jobs and shareholder value.
After performing a rapid strategic and tactical review, Capital Restoration devised a broad strategy for saving Gloucester and turning it around. Payment plans and/or settlements were negotiated with all vendors; and unsatisfactory vendor relationships were terminated. After a detailed review, the product line was pared down while new, promising products were introduced. Concurrently, a focused marketing plan was developed and implemented. Finally, the work force was analyzed and strategically optimized based on the findings.
By the end of fiscal year 2003, Gloucester had become a growing, profitable company. EBITA went from a substantial deficit in fiscal year 2002 to a positive 18% of sales for fiscal year 2003. Recently, the company was sold, providing substantial liquidity for the shareholders whose stock had been in danger of becoming worthless only one year previously.
With over 6,400 members, the TMA is the premier trade group in the corporate renewal/turnaround management industry. The TMA holds numerous meetings and continuing education programs and represents the profession in the public arena.
Capital Restoration is a leading corporate renewal firm with strong strategic and operational capabilities. The firm focuses on the middle market companies. Capital Restoration offers a broad range of services including crisis management, turnaround management, forensic accounting, lender advisory services and valuations. Its professional personnel have experience in a variety of industries including manufacturing, retail, distribution, telecommunications, healthcare, food processing, materials handling, information technology, environmental and software.
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