Background

This $160 million textile manufacturer with production and other facilities having a value of $50 million was reporting annual losses of $41 million.

Key Issues

• The company was manufacturing and carrying excess inventory.

Action

• RSI formulated a plan to consolidate the company’s operations and reduce its inventory, and assisted the company to implement the plan.

Outcome

• In eight months, the company was turned around from the $41 million annual loss to break-even level.
• The company avoided bankruptcy.
• The market pricing of the company’s publicly traded bonds increased from 35 to 95 in eighteen months.