Food Distributors of the Americas

Division: Phoenix Management Services


Client

Food Distributors of the Americas (FDA) was a regional distributor of bakery products and supplies to small independent bakeries and restaurants. In addition to the wholesale business it operated a retail shop open to the public from within its corporate headquarters and distribution center in Buffalo, New York.

Problem

The company experienced rapidly deteriorating revenues and consolidated its operations down to two facilities located in Buffalo, NY and Saratoga Springs, NY. FDA, however, was unable to sufficiently improve profitability and decided to liquidate all inventory and other assets. Phoenix Management was engaged to assist in the oversight of the liquidation of FDA assets.

Solution

Phoenix worked collaboratively with FDA’s management and lender in building and executing a credible and achievable liquidation plan that addressed accounts receivable collections, inventory reduction, expense reductions and time frame, and overall cash forecasting throughout the liquidation period. Phoenix added value by advising management on a strategy for the ultimate sale to a national bakery distributor as well as seeking out non traditional buyers such as insurance salvage and liquidators as a source for the purchase of the eclectic mix of products in its retail store.