Restructuring of the Spanish subsidiary of a kitchen furniture manufacturer

Key data

Project period

2008 - 2010

Topic

Restructuring & Turnaround

Client

A large German premium kitchen furniture manufacturer based in Baden Württemberg that ceased business operations as a result of bankruptcy in 2017.

Background

Following a number of restructurings and its acquisition by private equity, the new BoD of this formerly leading German kitchen furniture manufacturer (~300-400 Mio € turnover p.a.) hired me as interim managing director with full P&L responsibility to lead the turnaround of its Spanish subsidiary (~10 Mio€ TO).

Goals

Transformation of the business model: Identification and search for new business areas to replace the collapsing sales with independent kitchen studios in a crisis-ridden Spanish economy. Return to the profit zone increasing sales and achieving profit, or at least break-even.
Restructuring: change legal and commercial structure from legally independent subsidiary (Aktiengesellschaft) to direct sales organization from Germany, realising cost savings through liquidation (closure) of the Spanish subsidiay in July 2010

Strategy & Execution

Developed a strategy for business development with a focus on key account El Corte Inglés
Optimized process => streamlining receivables, supply chain management, and order fulfillment
Focus on the essential KPIs: sales (specifically: presence / visibility at the point of sale), and best-in-class execution in the installation of the kitchen furniture at the consumer end

Ergebnisse

Development of a new sales channel and a shop-in-shop concept for El Corte Inglés, Europe´s largest department store.

30 shop-in-shop stores were successfully implemented at the POS, more than compensating the sales decline in the independent kitchen studio channel, whilst increasing margins and customer satisfaction

Sales growth + 30% at the height of the global financial crisis in Spain

Successful liquidation of the Spanish subsidiary and conversion to direct sales from the German factory, in accordance with the new European distribution strategy

Return to profitability

Main tasks related to the liquidation of the Spanish company ALNO Spain S.A. were: dissolution of contracts with suppliers and customers, dismissal of employees or alternative offer for permanent employment in Germany, contact with auditors and lawyers

To solve acute challenges I offer you my support even at short notice.

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