How True North PMP Saved Pensions and Revitalized a Company. When Hedwin Corporation, an employee-owned manufacturing company, began facing severe financial distress, the stakes were higher than a typical business turnaround. Every misstep threatened not only the survival of the company but also the retirements and financial futures of its employee-owners. As the company teetered on the edge of bankruptcy, morale was low and confidence in the company’s direction was fading.
The Board of Directors recognized the need for immediate and decisive leadership. They turned to True North PMP Consulting to help guide the company through one of the most challenging periods in its history.
Diagnosing the Real Problems
True North PMP Consulting CEO Rich Broo was appointed as CEO of Hedwin by the Board of Directors and tasked with revitalizing the organization. His first step was conducting a comprehensive Product and Project Management Process Audit to uncover the root causes of the company’s struggles.
The findings were significant. Hedwin was dealing with exceptionally high operational costs, a disproportionately large headcount, aging production equipment, and low production and quality rates. Sales were eroding, contribution margins were declining, and the Employee Stock Ownership Plan (ESOP) was draining much-needed cash from the business.
By clearly identifying these operational and financial weaknesses, True North created a roadmap for meaningful change.
Transparent Leadership and Bold Action
One of the most important elements of the turnaround was transparency. Rich Broo shared the audit findings with both the board and employees, explaining openly that existing processes were failing and that major changes were required to save the company.
With that understanding in place, a bold restructuring strategy was implemented. The company initiated a 363 bankruptcy with the help of a financial restructuring consultant. The ESOP was dissolved, underperforming divisions were sold to reduce headcount, operating costs were aggressively reduced, and sales agreements were renegotiated to stabilize revenue.
Turning Crisis into Opportunity
These strategic actions transformed the company’s trajectory. Instead of collapsing under financial pressure, Hedwin regained stability and ultimately sold at auction for $22 million.
The most meaningful result, however, was what the turnaround protected. Dozens of employee pension funds were preserved, and all employees received proceeds from the sale—securing the financial futures of families who had dedicated years to the company.
A Powerful Example of Strategic Leadership
How True North PMP Saved Pensions and Revitalized a Company. The Hedwin Corporation turnaround demonstrates how decisive leadership, rigorous project management audits, and strategic restructuring can transform even the most difficult business situations. True North PMP Consulting not only maximized the value of a struggling company but also safeguarded the livelihoods of the people who built Connect with us here and follow True North PMP Consulting on Facebook and LinkedIn to learn more about how we hel organizations navigate complex challenges and create lasting value.
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