Case Study: Stabilisation and restructuring for distressed automotive supplier​

Automotive Supplier
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  • Private Sector
Automotive Supplier

Background

The company is a Tier 1 automotive supplier, manufacturing polished stainless steel exterior trim for luxury automotive OEM’s in the UK.​

The company was in severe financial distress.  The business had become over-leveraged following a difficult product launch.  Investment was required to deliver a further 40% increase in production capacity, whilst ensuring a sustainable cost base could be achieved. 

How We Helped

  • Achieved stability through daily cash management of severe liquidity shortage.  Communicated critical situational updates to stakeholders​
  • Delivered a solvent restructuring, whilst maintaining 100% OTIF delivery to requirements.  Secured a buyer for the business to provide the investment required to meet coexisting demands of customers and creditors​
  • Delivered a seamless transition to the new shareholder’s team, whilst simultaneously supporting the recovery of a 3-month product launch commitment​
  • Appointed by the new shareholder to develop the implementation plan for the cost reduction and operational improvements, establishing processes and pragmatic ways of working to address fundamental operational gaps ​
  • Recruited and managed external consultants, ensuring sufficient resource to maintain pace on improvement workstreams​
  • Improved internal communication to overcome functional silos at all levels of the organisation, to ensure the internal team was working to one common plan​

The Results

  • Restructured debts, in conjunction with operational improvements to ensure short-term liquidity​
  • Provided new investor with diagnostic insight to execute effective acquisition and leadership to accelerate implementation of restructuring plan ​
  • Established foundations of a sustainable cost base for the new executive team to continue building long-term success​

We are a turnaround, transformation and transition business working in challenged or failing organisations who understand how to improve results in difficult environments. We both design and deliver solutions in all stages of turnaround and challenged situations.