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