A 75-year-old Family-Owned Toy Distributor Gets a New Lease on Life

Directed a successful turnaround of a family owned toy distributor returning them to profitability within 12 months.

The Company: Toy distributor to small toy stores and an e-commerce business​

The Issue: Due to successive losses, lender asked the company to pay off its credit line and leave

The Work:

• Assisted the third generation to buy out the company from their parents
• Prepared a 3-year business plan to get the company to profitability within 12 months
• Restructured the new business by using a 3PL warehouse, improving inventory management, installing a new ERP system and moving to a new location
• Instituted major cuts in employees cost and other SG&A
• Obtain a new credit line from the same lender of the old company
• Within the first year, the Company achieved a small profit of 1.2% of sales; in its the second year sales grew by over 50% and net profit was 8.2% of sales
• After 3 years the company moved to a new bank which provided a larger credit facility at a lower cost
• Helped hire a CFO