Success stories

Renee has established an outstanding reputation as a turnaround expert by restoring profitability and keeping companies out of Chapter 11. Each of the following five success stories has been selected to highlight a particular kind of problem she has solved.

Note: To many of Renee's clients, preserving confidentiality is extremely important. In those cases, the names of the companies are not displayed, but references from each are available to potential clients and referral sources.

Success story
Dramatically improved customer service

Situation

• Client was an employee-owned manufacturing company.
• The company had experienced increasing losses for three consecutive years.
• Board of Directors did not realize that financial statements were inaccurate.
• Costs were significantly higher than industry standards.
• Operations were chaotic.
• Everyone complained about a lack of accountability.
• There was wide-spread disruption, dissatisfaction, and animosity resulting from the poorly executed acquisition of another company.
• Renee was recommended by the Company's banker.

Results

• Renee ensured production of accurate financial statements.
• Cost reductions were dramatic.
• There was an end to chaos, made possible by personnel and policy changes as well as by documentation of procedures.
• Delivery times improved from approximately 50% to 98%.
• A system for ensuring accountability, including clear definition of job responsibilities, target-setting, and measurement and feedback was in place.
• Employees from both the original and acquired companies worked as a team.
• The company is profitable today.

Success story
Negotiated end to personal guarantees

Situation

• A multi-generation family-owned manufacturing company, a union shop, had experienced significant, increasing losses for three consecutive years.
• The Company's lender was threatening to shut them down.
• Operations were almost totally out of control.
• Financial records were inaccurate.
• The elderly majority shareholders were afraid that the lender would pursue their personal guarantees.
• Family members were at each other's throats.
• The Board of Directors hired Renee based on the recommendation of a family friend, an experienced bank executive.

Results

• Within 12 months, the company was profitable on a normalized basis.
• Financial records were “clean.”
• Operations were significantly improved.
• Gross profit improved 50%.
• The company obtained new funding at favorable rates.
• Renee successfully negotiated the removal of personal guarantees.
• Cordial family relationships were restored.

Success story
Enhanced family relationships

Situation

• The company was a multi generation family-owned business which included eight different business units and conducted business internationally.
• Several of those business units were failing badly and putting the profitable businesses at risk.
• Family relationships were strained because roles among family members were not clearly defined.
• Renee was referred by the Company's CPA.

Results

• Renee, working as an outside consultant in this situation, developed a management control system for the troubled business units.
• Acting upon Renee's recommendations, the owners sold the unprofitable operations, and the family members divided the remaining business units into two separate entities, each owned by only one family.
• Family relationships have continued on a positive basis.
• Both entities are profitable today.

Success story
Brought order out of chaos

PML Microbiologicals, Inc. was the sole subsidiary of PML, Inc., a publicly traded, FDA-regulated medical device manufacturer. PML, the third largest supplier of culture media in North America, reached a crisis point in 1995. The company had lost money or operated at break-even every year since 1991. In 1994, financially and operationally troubled PML acquired a financially and operationally troubled competitor, Adams Scientific. That acquisition precipitated a crisis.

In 1995, PML's operations were out-of-control. Financial records were inaccurate and out-of-date; the company had no business plan; there were frequent overdrafts at the bank; the company was on COD or credit hold with many vendors; systems were woefully inadequate; there were frequent stock-outs of raw materials and finished goods as well as numerous shipping errors; inventories were inaccurate; there was a growing chorus of customer complaints.

The Special Assets Department of PML's bank recommended that PML engage Renee Fellman. PML agreed.

Renee had full operating authority at PML from January 9, 1995 until mid-April 1996. Working as Interim CEO, Renee

Gained control of cash and purchasing

• Restored credibility with stakeholders
• Prepared the company's first-ever operating plan
• Reduced personnel costs through operational improvements
• Designed and implemented a management control system
• Instituted cycle counting of inventory
• Tightened production control
• Solicited bids on all materials and services
• Eliminated positions or replaced 75% of managers
• Avoided Chapter 11 by negotiating a creditors' extension

Results

• PML returned to profitability during Renee's tenure.
• Performance in every financial and operational category improved dramatically.
• PML repaid its creditors in full.
• PML enjoyed record earnings until 2006, when the company was sold and shareholders realized a handsome profit.

The charts below illustrate three key results of Renee's tenure.

Success story
Achieved long-lasting results

In 1987, when the owners of Pesznecker Brothers, Inc. called Renee, the 36-year-old manufacturing company with nationwide sales had been losing money for three years and had overdrafts at the bank. The current ratio was .64; liquidation ratio of assets to liabilities was .37. The company's financial records were inaccurate and out-of-date. The staff was poorly trained and disorganized, and the IRS was threatening a forced shut-down.

Renee was referred by the Special Assets Department of the company's lender.

Working with full operating authority, Renee

• Stopped overdrafts and losses
• Cut costs
• Eliminated unprofitable projects
• Designed and implemented a new cost accounting system and system of management controls
• Avoided Chapter 11 by negotiating out-of-court agreements with disgruntled creditors

Results

• Profitability was restored.
• Operations were more efficient.
• Delivery times decreased by half.
• Staff accountability and morale improved.
• Company is now run by the next generation and remains consistently profitable.