Navigated business during the biggest financial crisis
Business Type: Leading fashion house
- Challenge:
- Global financial crisis causing liquidity challenges across markets
- Rapidly changing business environment alongside reduced discretionary spending by consumers
- Business on the verge of closure
- Action:
- Transitioned to a drop-ship model and downsized workforce from 80 to 35
- Closed warehouses and rationalized office space
- Secured new funding through trust-building with bankers and compliance with stringent covenants
- Impact:
- Balance sheet reduced by $15 mm with lower inventory and payables, and higher cash
- Saved $2 mm per annum in operating expenses, across rent, people costs and other opex
- Continued operations despite market instability