Winter Harbor LLC
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Benjamin Foods

 

Benjamin Foods is an east coast-based distributor of food products for institutions and restaurants.  They offer a full line of food products including canned and dry goods, frozen foods, meats, seafood, cheeses, produce, and non-food items such as paper goods, janitorial items, equipment and supplies.  They work with clients in the hospitality, healthcare, educational, and correctional industries. Benjamin Foods produces $130 million in revenue.

Situation

Benjamin Foods was experiencing a decrease in profitability due to high fixed costs and low productivity from several of its distribution facilities. The Company relied heavily on its revolver balance to create available cash for operational expenses. Benjamin Foods required assistance with developing an assessment of its current operations and prioritizing its restructuring initiatives.

Scope of Work

Winter Harbor was engaged to assess the Company’s current and following year financial forecast and aid in the development of a 13-week cash flow budget and restructuring initiatives.

  • Performed an analysis of the Company’s 13-week cash flow budget and collateral roll forward.

  • Worked with management to develop a detailed cash flow schedule.

  • Evaluated the viability and achievability of the Company’s present and following year financial projections. Moreover, tested all major assumptions and drivers.

  • Provided recommendations of restructuring initiatives to Board Members, focused on operational improvement and increasing gross margins.

  • Assisted management with the implementation of initiatives to improve financial performance.

  • Lead negotiations with creditors and senior lenders on behalf of Benjamin Foods.

Engagement Outcome

Benjamin Foods presented our comprehensive assessment and strategic recommendations to its secured lender and began to implement the restructuring initiatives outlined in the assessment.  Since the completion of our work, Benjamin Foods has experienced an improvement in operational functions and financial stability. They are in the process of winding down and merging an under-performing distribution facility.