Discount Retailer

Highlights

  • Reorganized finance and related operational areas for greater effectiveness and efficiency
  • Brought company into Sarbanes-Oxley compliance
  • Revamped and strengthened strategic planning process

Background

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