An innovative Central Pennsylvania Food manufacturer was on an aggressive growth curve with new products lending unique value propositions in the portable, lifestyle-driven healthy foods marketplace. On their current trajectory, the company was growing profitably and planning for future expansion when a review of their financials indicated that something was incredibly wrong.
The CEO found that their CFO was funneling money from the business using a complex model to cover his embezzlement and hide his activity. The company discovered that several million dollars were channeled away from the company. This loss was compounded by the fact that their pricing models were inadequately covering their operations.
As a direct result, the company found themselves in severe financial distress, out of compliance with their tax liabilities and at risk of closure.
The company turned to SEWN's layoff aversion program to help it assess the depth of the crisis it faced at to carve a path forward for the company. SEWN immediately began analyzing the issues with the company, their financial institutions and the IRS to structure a critical path to a successful turnaround and secure the company's future viability.
In addition to correcting the company's tax situation, SEWN worked with the CEO to properly align the company's costing structures, margins and projections. SEWN worked with the state to determine a recovery pathway for the company's exposure to its noncompliant state loans.
Today, the company has fully recovered from the embezzlement and is profitable. It has realigned its growth objectives and is experiencing managed growth in its sector.