“Herb” Philipson's is a chain of retail stores located in central and upstate New York, offering outdoor apparel, athletic and casual footwear, in addition to sporting, camping, fishing and hunting gear. They have an annual revenue of $33 million, providing retail consumers with their outdoor apparel both in-store and online. They refer to themselves as the "Outfitter for the Great Outdoors". After nearly 70 years of multi-generational ownership, “Herb” Philipson's was put up for sale at the start of 2018.
Winter Harbor was hired by a prospective lender to perform a comprehensive assessment of “Herb” Philipson's business operations. We:
Evaluated the viability of the 2018 and 2019 P&L budget.
Evaluated the viability of the 2018 and 2019 cash flow budget and funding requirements.
Analyzed the achievability of major cost reductions and sale growth initiatives integral to the forecast.
Developed a written assessment of the findings.
Winter Harbor identified several areas in which the forecasted EBITDA, cash flow and funding requirements were at risk, and provided several recommendations for minimizing the risks. The assessment enabled the client, a prospective lender in this case, to adjust its financial covenants and renegotiate other terms with the debtor.