Case Study:
Discount Retailer
Stanton Associates performed an operational turnaround of the financial operations of a multi-state retail chain, a NYSE public company that is a $1 billion discount retailer of groceries and other household goods. Over a ten month period a team of Stanton Associates professionals re-organized the finance department and related areas. A Stanton Associates partner acted as the interim Chief Financial Officer of the Company until a permanent CFO was hired near the end of the engagement.
Business challenges on arrival
- Recent frequent turnover/vacancy in office of CFO had resulted in vacuum of leadership and direction for financial operations
- Multiple citations of material weakness in internal controls by auditors
- Late filing situation with the SEC and multiple hurdles to cross to get filed and to avoid a "disclaimer" opinion from the auditors
- Sarbanes-Oxley compliance a distant vision
- Confused and demoralized finance and accounting staff
- No cohesion between the finance department and other functional areas of the company
Actions taken
- Implemented strong internal controls and related operating procedures throughout the Company
- Re-organized the finance department. for improved efficiency and effectiveness
- Assumed leadership role in getting the Company into compliance with Sarbanes-Oxley for the first time
- Developed a budgeting process
- Detailed a rational, comprehensive approach to the Company's strategic planning process, and expanded and added value to the Company's strategic plan
- Developed Company-wide financial analytic tools and reports for use across all departments
- Evaluated the existing finance department personnel; commenced process to replace and upgrade personnel
Results
- All prior period SEC filings successfully completed
- "Disclaimer" opinion avoided. "Consent" of prior auditors obtained
- Finance department upgraded and reorganized
- Budgeting process implemented successfully down to the department level
- New strategic planning process initiated
- Helped recruit new financial leadership including an experienced, talented CFO