Seco Products

Industry

Light Metal Fabrication

Size

Middle Market

Expertise

Interim Management

Assignment

To provide Interim Management and to develop a strategy to work out the company's financial difficulties

Actions

Seco Products manufactured cafeteria lines, specialty food kitchens, and food delivery systems. The company was owned by a Private Equity Firm which had purchased the company on a high multiple based on an aggressive growth forecast. Performance did not occur as planned, the company was in violation of their bank covenants, and bankruptcy seemed almost certain. MainStream was engaged to provide a strategic assessment and interim management. At the point of MainStream involvement the company was in the crisis stage where the major vendors had quit supplying, and the union was preparing to go on strike. A reinvestment analysis was prepared and options considered. Both the bank and private equity were prepared to reinvest in the business providing that labor concession could be achieved. A new contract was negotiated with the union but the membership rejected the plan.

Results

Upon rejection of the union contract the bank ceased funding the company. MainStream closed the company and started the process of liquidation.

 

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