Kasle Steel

Division: Phoenix Capital Resources, Phoenix Management Services


Kasle Steel was a $140 million family-owned steel manufacturing and service center based in Michigan.


Due to the decline in the US auto market, the Company was experiencing substantial operating losses. Additional complications included family management transitions, weak financial management, inefficient union operations, a highly leveraged plant expansion and lost support from its lenders.


Phoenix Management Services conducted an operational assessment and assisted management in reinvigorating the three unions involved in this situation. As a result, plant efficiencies increased, overtime problems decreased, and labor costs were reduced. Phoenix also managed the liquidation of obsolete inventory. Finally, Phoenix restructured the Company’s debt, and the Company ultimately returned to sustained profitability.