Project Orion

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Phase 1 & 2 Strategic Assessments & Operational Restructuring

ABOUT THE COMPANY:

The Company is a Private Equity backed provider of freeze-dried / dehydrated food, and food storage meals for emergency preparedness and outdoor use. The Company is based in Salt Lake City, UT, and distributes product through their online store.

SITUATION:

Due to market demand declines, lower returns on ad spend, and operational challenges in supply chain and production the Company was in covenant default with its senior agent, and subordinated lender. Shareholders were becoming concerned about recouping their investment, and given the Company’s significant liquidity constraints had a limited amount of time to revitalize the Company.

ENGAGEMENT:

G2 was engaged to perform a review of the Company’s strategic plan, potential risk, near-term liquidity, and current operations. G2 quickly performed a Phase 1 Assessment, which looked at operational challenges facing the business, overall demand drivers, and strategic alternatives. During the development of the Phase 1, G2 not only provided an operations manager but also put in an interim CEO to run the Company given the departure of the CEO.

OUTCOME:

G2 quickly inserted an interim operations manager, interim CEO, and delivered a Phase 1 Assessment. G2 then successfully negotiated an amendment to the credit documentation including, implemented several key restructuring initiatives, renegotiated vendor agreements, increased prices, cut nonprofitable SKUs, and reduced SG&A.