Strategic Options — Turnaround: Publishing Company
Client
A second-generation Publishing Company had experienced more than three years of losses.
Situation
- Informed by senior lender that line of credit (LOC) had been terminated and term debt would not be renewed
- Seven figure subordinated shareholder debt at risk
- Shareholders unsure about best course of action — restructure, sell or liquidate
Solution
- Engaged BlueWater Partners to review and recommend strategic alternatives
- Recommended restructuring operations, marketing and book selection process
- Sold unproductive assets to pay off senior and subordinated term debt
- Outsourced fulfillment, logistics and warehousing to third party
Result
- Paid off senior lender in full prior to termination
- Paid off shareholder subordinated debt in full
- Sourced new LOC
- Current cash balance exceeds seven figures
- Operations have been profitable since the completion of restructuring activities
Published with client permission