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John R. Gordon Jr.
Senior Managing Director | Partner, Partners
John Gordon has more than 25 years of diverse business experience demonstrating an ability to bring deep financial and analytic skills along with a passion for operational improvement to difficult situations.
Mike Juniper
Managing Director | Partner, Partners
Mike Juniper has 20 years of experience in financial and operational analysis and improvement, turnaround and restructuring consulting, and interim management. He has served as an advisor to numerous companies through Chapter 11 proceedings.
Winston Mar
Senior Managing Director | Partner, Partners
Winston Mar is an experienced professional who provides advisory and interim management services to distressed companies.
- Reduced headcount while improving throughput by 30%
- Turned excess inventory into cash
- EBITDA improved from negative to positive
$200MM processor of frozen vegetables that was in default with their senior ABL lender and in danger of being liquidated. CR3 Partners was engaged to assess the business, which included developing a 13-week cash flow and full year budget, later identifying and executing operational improvements. Company’s EBITDA increased from -$7MM to a trailing 12 months +$5MM with the full fiscal year projected at $21MM.
The Situation
- $200MM processor of frozen vegetables for sale to further processors, foodservice companies, and retail supermarkets
- Company’s liquidity was being consumed due to increase in inventory and decrease in overall profitability
- Company was in default with senior ABL lender and in danger of being liquidated
The Work
- Performed initial assessment of business, helping to create 13-week cash flow forecast and multi-year, bottom-up budget
- Identified and executed on operational improvements
- Increased throughput and reduced staffing needs on vegetable processing lines at multiple sites
- Worked with sales and procurement to strategically increase pricing, develop and execute approaches to reduce excess inventory, and help better match new planting commitments with farmers to forecast demand
- Facilitated weekly meetings with company’s board, management, and lenders to align tasks and goals and to keep stakeholders informed of progress
The Results
- Reduced headcount on multiple processing lines by 30% on average while also increasing throughput by 30%
- Sold $4MM of excess inventory to generate cash and reduce borrowing
- Company’s EBITDA increased from -$7MM to trailing 12 months +$5MM with full fiscal year projected at $21MM
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