Fairbanks Scales

Division: Phoenix Capital Resources, Phoenix Management Services


Client

Fairbanks Scales was a $60 million manufacturer of a wide range of industrial scales based in Kansas City, MO.

Problem

Due to a competitive, price-sensitive marketplace, Fairbanks’ profit margins were beginning to erode. Rising costs in manufacturing and distribution also contributed to reductions in profit. These issues, coupled with an “out-of-formula” asset-based credit facility, were leading to an impending liquidity crisis.

Solution

Phoenix Management Services assisted the Company’s management as they consolidated distribution, streamlined manufacturing and restructured sales commissions. Phoenix also assumed the role of CFO and assisted management with eliminating more than $5 million in costs. As the situation stabilized, Phoenix successfully refinanced Fairbanks’ credit facilities with a lender that was able to support the Company’s liquidity needs. As a result of Phoenix’s efforts, Fairbanks Scales stabilized and its business returned to profitability.