Bankruptcy Concept. Depressed male entrepreneur suffering from business failure, sitting at

 

It’s always exciting when we get to share true stories like how One Company Went From the Brink of Bankruptcy to Success. When things were going off the rails at the Hedwin Corporation, with plummeting employee morale and looming bankruptcy, a team was brought in to salvage the situation. This blog delves into the remarkable journey of how smart project management process audits led to the revitalization of the company, saving it from collapse and securing a $22 million sale price.

Identifying the Crisis:

Employee morale hit rock bottom as daily challenges turned the workplace into a battleground of fires to put out. The company’s status as employee-owned added weight to the situation, with retirements and futures on the line with every misstep. Despite a strong core product line, Hedwin was facing a downward spiral.

The Turnaround Strategy:

Rich Broo, appointed CEO of True North PMP Consulting, faced the daunting task of steering Hedwin back to success while considering the ESOP and employee sentiments. Through meticulous audits, the root causes of the company’s failure were pinpointed, revealing high operational costs, outdated equipment, and declining sales.

Implementing Change:

With clarity on the issues, a comprehensive turnaround plan was set in motion. Aging sales assets were replaced, manufacturing processes were revamped, and operational costs were slashed. Dissolving the ESOP was a hard decision, but one necessary for survival.

Executing the Plan:

Rich Broo rallied the board of directors and employees behind the turnaround strategy. Initiating a 363 bankruptcy and working with financial consultants paved the way for restructuring. Underperforming divisions were sold off, headcount was reduced, and sales agreements were renegotiated.

The Triumph:

Through perseverance and hard work, the Hedwin Corporation emerged from the brink of bankruptcy stronger than ever. The company was sold at auction for an impressive $22 million, safeguarding employee pensions and providing proceeds to all staff members.

The journey of how one company went from the brink of bankruptcy to success serves as a testament to the power of resilience, strategic planning, and effective leadership in times of crisis. By embracing change and making tough decisions, even the most dire situations can be turned around. The success of Hedwin is a reminder that with determination and commitment, no challenge is insurmountable. Find out how a 30 minute audit consultation can put your company on the path to success! Connect with us on Facebook and LinkedIn.